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ICAHN BATTLE PUSHES LIONS GATE INTO THE RED

November 10, 2010 by · Leave a Comment 

Despite a 25-percent rise in overall revenue during its second quarter versus the same quarter a year ago, Lions Gate Entertainment on Tuesday reported that its legal battle with activist investor Carl Icahn contributed to a $30-million loss in the period. Some $20.7 million of that loss was related to a debt-for-equity swap with shareholder Mark Rechesky that was seen by some outsiders as a maneuver to dilute Icahn’s stake in the company. Lions Gate also blamed higher marketing costs. Nevertheless, it said, motion picture revenues were up 23 percent to $341 million, nearly a third of that due to the strong performance of The Expendables.