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Lionsgate Says It Sees Losses From ‘Conan The Barbarian’, ‘Warrior’, And ‘Abduction’

People who follow box office results closely won’t be surprised, but Lionsgate made it official today: Conan the Barbarian, Warrior and Abduction were such stiffs that the company says in an SEC filing it expects to announce that it lost somewhere between $40M-$50M in cash flow for the current quarter. Lionsgate made the unusual forecast in a prospectus to sell 19.2M shares, which stems from its agreement to help billionaire Carl Icahn unload most of his holdings in the company. The arrangement ended Icahn’s effort to take control. Vice Chairman Michael Burns is meeting with investors who might want to buy the shares. Lionsgate stock was unchanged in mid-day trading.

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Carl Icahn Extending Lionsgate Offer

His $7.50-per-share offer had been set to expire Monday but has been extended to December 2. Icahn is the biggest shareholder in Lionsgate, at 33%. The offer expires on the same day that MGM is supposed to receive confirmation of its bankruptcy plan – Icahn owns 18% of MGM’s debt. Icahn has repeatedly criticized Lionsgate for costs and said he plans to launch a fight for control of the company’s board. Lionsgate’s annual meeting is set for Dec. 14.

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Carl Icahn Extends Lionsgate Share Offer

Mike Fleming

Though Carl Icahn’s attempt to take control of Lionsgate was dealt a setback recently by a Supreme Court judge in British Columbia who dismissed Icahn’s lawsuit to stop a Lionsgate de-leveraging move that pushed his 38% stake down to 33.5%, Icahn is still trying. He’s extended his $7.50 per share offer, which had already been extended to November 12. All this is going on as MGM announced that it is speeding toward approval of its prepackaged bankruptcy, with Spyglass partners Roger Birnbaum and Gary Barber at the helm. Icahn, a significant holder of MGM debt, is in the middle of that, too, and there’s every indication there might be an alignment of Lionsgate and MGM, with Icahn playing a role. Here’s the announcement Icahn just made:

NEW YORK, Nov. 12, 2010– Carl C. Icahn announced today that the offer by his affiliated entities to purchase up to all of the outstanding common shares of Lions Gate Entertainment Corp. for $7.50 per share in cash has been extended and will now expire at 11:59 p.m., Vancouver time, on November 22, 2010, unless further extended or withdrawn.

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