Arts & Entertainment

Lions Gate rejects Icahn takeover bid

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A Hollywood studio deal has gone sour. Lions Gate entertainment has rejected a bid by investor Carl Icahn.

Icahn currently owns 19 percent of Lions Gate stock. He wants 30 percent, but company officers don’t want Icahn to have that big a voice in decisions.

One of those decisions could be the purchase of movie studio MGM, which Lions Gate is pursuing. Business analyst Mark Lacter says Icahn believes Time Warner is the better suitor, not Lions Gate.

"But in this case, he might have a point. Time Warner would be the logical buyer because Time Warner can slice and dice the MGM library through its related businesses: TV production, video games, animation – lots of stuff."

Icahn believes MGM’s film library, despite the James Bond franchise, isn’t worth Lions Gate's interest. Shares of Lions Gate stock rose this morning on word the board considered Icahn’s $6 per share offer too low.