You will be redirected back to your article in seconds

Icahn extends Lionsgate offer until MGM vote

Billionaire's $7.50 a share offer won't expire until Nov. 1

Carl Icahn’s extended his tender offer to buy more Lionsgate stock for another 10 days to Nov. 1.

That means the $7.50 a share offer won’t expire until after MGM debtholders have voted on a recapitalization plan that would leave Spyglass Entertainment toppers at the head of MGM following a prepackaged bankrupcty. The deadline for voting on that plan is Oct. 29.

Icahn’s allied with Lionsgate on a rival plan that would merge MGM and Lionsgate.

Icahn, who already owns 33% of Lionsgate, said that 6.5 million shares have been tendered so far under an offer that was set to expire Friday. Icahn had built his ownership stake to 38% in July but Lionsgate reduced that to 33% with a debt-to-equity deal that boosted Mark Rachesky’s stake from 19% to 29%.

Even though Icahn’s teamed with Lionsgate on the MGM bid, he hasn’t backed off from his announced plan for a proxy fight to replace the Lionsgate board at the minimajor’s next annual meeting.

Popular on Variety

The extension of the tender offer came a day after Icahn’s aggressive offer Thursday to buy up more MGM debt as a way to control the outcome of a proposed merger for the Lion, according to sources close to the creditors. Icahn disclosed Thursday that he’s offering to buy some $963 million in debt by guaranteeing to debtholders that they will receive at least 45¢ on the dollar as long as they agree to vote against the proposed merger with Spyglass.

Icahn already owns a substantial amount of MGM’s $4 billion in debt. An MGM spokeswoman declined comment.

“We should not allow ourselves to be railroaded into the Spyglass plan,” Icahn said in a prepared statement Thursday. He called the Spyglass plan a “prescription for disaster.” Spyglass toppers Gary Barber and Roger Birnbaum have not commented.

Under Icahn’s favored plan, MGM would merge with Lionsgate, and the Lion’s debtholders would end up with a 55% stake in the merged company. Under that plan, the company would be valued at $1.8 billion.

Shares of Lionsgate were off 4 cents to $7.37 in mid-session trading Friday. Shares hit a 2-year high on Oct. 15 at $7.65 and are up over 30% over the past year.

More Film

  • Endeavor Content Studio Logo

    Endeavor Content, Studio Exile Strike First-Look Deal With Mexican Producer Subtrama (EXCLUSIVE)

    Endeavor Content is upping its local-language game, signing a significant first look deal with Mexico City-based producer Subtrama. Endeavor enters the deal with studio Exile, a long-form English and Spanish content maker. Subtrama is behind series like Cary Fukunaga’s Netflix drama “Maniac” and films like Gael García Bernal’s “Museo.” Mauricio Katz, Manuel Alcalá, and Panorama [...]

  • Taylor Swift Variety Facetime

    How Midterm Elections Inspired Taylor Swift's New Song, 'Only the Young'

    Miss Americana was keeping another song about America in her back pocket, as it turns out. Taylor Swift recorded a song during her “Lover” album sessions, “Only the Young,” that was held back and kept under wraps for the right occasion — that occasion turning out to be “Miss Americana,” the Lana Wilson-directed documentary that [...]

  • Bradley Cooper Nightmare Alley

    Netflix Nabs Bradley Cooper's Leonard Bernstein Drama

    Netflix will back Bradley Cooper’s upcoming drama about Leonard Bernstein, the legendary conductor and musical maestro behind “West Side Story” and “Candide,” Variety has confirmed. The film was initially set up at Paramount. It has an A-list lineup of producers, including Martin Scorsese, Steven Spielberg, Emma Tillinger Koskoff, and Todd Phillips. Kristie Macosko Krieger from [...]

  • The Simpsons - Disney parodies -

    Disney Mashes Up 'The Simpsons' Parodies of Disney Films, Theme Parks

    Disney has embraced some of the gentle ribbing dished out by “The Simpsons” over the years — hoping to convince more people to sign up for Disney Plus. The media conglomerate released a compilation of what it calls “the best Disney references in ‘The Simpsons,'” which is now part of the Disney empire, with past [...]

  • Lin-Manuel Miranda

    Sundance 2020: Will the Market Be Colder After Last Year's Spree?

    When it comes to big acquisition deals for independent movies, Sundance is the room where it happens, to borrow a lyric from “Hamilton.” So it’s a lucky coincidence that Lin-Manuel Miranda will be a guest at this year’s film festival. For the first time, Miranda will hit the slopes in Park City, Utah, to rub [...]

  • Oprah Russell Simmons Documentary

    Oprah Defends Decision to Exit #MeToo Doc: 'This Is Not a Victory for Russell' Simmons

    Oprah Winfrey explained her decision to step away from “On the Record,” an expose about sexual harassment in the music industry, including women who have accused mogul Russell Simmons of misconduct. The documentary, from filmmakers Kirby Dick and Amy Ziering, will premiere at Sundance on Jan. 25. Winfrey, who served as an executive producer and [...]

More From Our Brands

Access exclusive content