Lions Gate Entertainment Corporation has secured a welcome $32m investment from a group led by Paul Allen's Vulcan Ventures Inc, Scandinavia's SBS Broadcasting and Germany's Tele-Munchen Group.
The move sees the investment group receive warrants and convertible shares that could amount to a 37% stake in Lions Gate. Amongst other companies to respond to Lions Gate's recent prospectus offering shares is Boston-based investment group Fidelity Management and Research Co, which has raised its stake in the group from approximately 10% to 14.62 percent.
Lions Gate, which has posted two years of losses since going public, saw its stock rise 13% following the moves. The company, which may strike deals for SBS and Tele-Munchen to take rights to Lions Gate product in their territories, has also appointed former head of TV at Sony Pictures Entertainment Jon Feltheimer to its board. Feltheimer will advise Lions Gate on corporate strategy, acquisitions and investments.