MUMBAI: Lionsgate has acquired the U.S. distribution rights to Barry Levinson’s found footage eco-horror film The Bay from Alliance Films.

From the producers of the Paranormal Activity franchise, the film is the next installment in their series following Insidious, and chronicles an unprecedented biological disaster unleashed from the waters of the Chesapeake Bay- an isopod parasite, carrying a horrific untreatable disease, that jumps from fish to human hosts. The true horror and scope of the event unfolds on footage captured on home videos and the internet by the town’s victims.

Lionsgate president of the motion picture group Joe Drake said, "Ingenious genre films are and always will be a specialty at Lionsgate. The Bay is a shining example of the kind of truly fresh horror film that audiences are always ready for, and that we excel at eventizing with them. Thanks to Barry, we’ll all be afraid to go in the water for years to come."

Lionsgate president of acquisitions and co-productions Jason Constantine said, "We have been big admirers of Jason Blum, Steven Schneider and Oren Peli since their breakout hit PARANORMAL ACTIVITY, and are thrilled to be in business with them. This film works so effectively because it establishes a very natural, everyday world, places the audience intimately within it, and then sits back as everything takes a horrific turn. Barry has incorporated found footage to the most satisfying possible effect, and it’s all the scarier for not relying on anything supernatural."

"It’s exciting to see a company like Lionsgate embrace The Bay so enthusiastically. The found footage / multiplatform approach opened up the film to creative possibilities I hadn’t encountered in my previous films, and I think these sorts of films will only continue to push boundaries as the technology changes," said director Barry Levinson.

The film was directed by Levinson, from a script he co-wrote with Michael Wallach. THE BAY was produced by Levinson, Jason Blum, Steven Schneider, and Oren Peli, and co-produced by Mythodic Films, with Brian Kavanaugh-Jones, Jason Sosnoff, Colin Strause, and Greg Strause executive producing.

The Bay is an Alliance presentation in association with IM Global. IM Global handled foreign sales, and Alliance will distribute in Canada, the UK and Spain.