IS LIONS GATE “APPEASING” CARL ICAHN?

Lions Gate Entertainment indicated on Monday that it is willing to engage in talks with activist investor Carl Icahn to see whether their differences can be settled. Icahn has been highly critical of Lions Gate’s principal executives, accusing them of overpaying for acquisitions and gambling on problematic movie productions. Significantly, the studio said in an SEC filing that it was setting aside $16 million in cash to pay severance to the executives if the talks with Icahn lead to their departure or if Icahn is successful in his takeover bid for the company. His $7.00-per-share offer to buy all of Lions Gate’s stock is due to expire on Friday. Reporting on the development, the Associated Press called the Lions Gate approach to Icahn “a significant appeasement.” That approach may have been dictated by the continued legal costs incurred in fighting Icahn’s takeover bid, which, the Los Angeles Times said today (Tuesday), has mounted into the millions of dollars.