Thursday, 12 March 2009

Hollywood Babble On & On #249: The Seige of Lionsgate Continues

According to Nikki Finke, billionaire investor Carl Icahn is making an offer to Lionsgate's debt-holders to buy the company's debt for $150 million.

Oooh, this is getting hot.

If you read my last post on the subject I discussed the five considerations of war that all must ponder before going into battle. Now I don't know the exact details of Icahn's offer, like how many cents on the dollar the offer means to the debt-holders, but it does show something. And that something is that Icahn appears to have at least some of his considerations in hand.

1. The Moral Law- Icahn appears confident that he believes in the rightness of his cause, because he's putting a lot of chips on the table. Which shows a serious intent to win.

2. Heaven- Icahn appears to know the environment he's working in, and how he can use this environment (concerns over the debt market) to increase his influence over Lionsgate beyond simple share purchases.

3. Earth- Icahn doesn't strike me as the type of guy who would just drop an offer for an $150 million debt buy up unless he had his logistical house in order.

As for his "commander" and his "method & discipline" well, that's a little too "insider" for a meager blogger like me to know, so it's time for the Lionsgate management to make their counter-move. This could turn out to be very interesting.

UPDATE- Some reports are saying that Icahn's offer is to buy the $150 million principal remaining on a $300+ million debt. Plus, I got this exclusive photo of Icahn outside the Lionsgate headquarters...

I have to say, he looks like he means business.

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