Michael Burns has also reached an agreement to extend his contract as vice chairman until September 2011. Feltheimer and Burns now will have 25 years’ combined experience at the helm of Lionsgate by the end of their respective contracts, reflecting exceptional long-term stability.
"We are delighted to make this early decision to extend Feltheimer’s tenure as co-chairman and CEO until 2014, providing Lionsgate with extraordinary continuity as he and Burns continue to grow the Company into one of the premier next generation studios," said co-chairman Harald Ludwig on behalf of Lionsgate board of directors. "During Feltheimer’s eight and a half years of leadership, Lionsgate has generated tremendous growth momentum, invested in a series of strategic and financially accretive acquisitions and built a very healthy balance sheet and strong cash position that is invaluable in the current market environment. We are confident that Jon and Michael are setting in place all of the elements for continued strong growth and industry leadership in the future."
The Company has filed a Form 8-K with the Securities and Exchange Commission containing the terms of Feltheimer’s new employment agreement.
Lionsgate has built a leadership position in motion pictures, television programming and home entertainment, assembled a 12,000-title filmed entertainment library and established a strong beachhead in new channels and digital delivery platforms through such recent acquisitions as: Redbus Film Distributors (subsequently renamed Lionsgate U.K.); the Debmar-Mercury television distribution and syndication company; Mandate Pictures; the launch of the FEARNet channel with partners Sony and Comcast; a 42 percent investment in Break.com; and a 43 percent investment in Roadside Attractions.
Lionsgate has generated such box office and critical successes as Crash, Monster’s Ball, 3:10 To Yuma, Rambo, The Bank Job, Forbidden Kingdom, Crank, Good Luck Chuck and the Saw and Tyler Perry franchises. Its television business encompasses Mad Men and Weeds, in addition to shows such as Tyler Perry’s House of Payne, Meet The Browns, The Wendy Williams Show, Trivial Pursuit, Family Feud and South Park in distribution and syndication. The Company’s home entertainment business has nearly 8% market share and continues its strong growth propelled by the industry’s highest boxoffice-to-DVD conversion rate, recent strong gains in BluRay sales and continued strength in revenues from library, new theatrical,television-to-DVD, fitness and family entertainment titles. Lionsgate currently has a strong cash position and a new and unused $340 million JP Morgan credit facility.
