Image by: Lionsgate
By Steven Morrison II
This particular lion is getting ready to roar. It is predicted that in early 2013, entertainment giant Lionsgate (LGF) will watch their stock rise along with everyone else due to several factors making this indie powerhouse go mega.
It is time for investors to tune in and make bank.
One of the biggest drivers for Lionsgate in 2013 will be the hidden gem Break Media. Lionsgate bought into Break Media back in 2007 and now owns 42% of the digital media company. It was a wise move, although many are surprised that they still have a share as there was much speculation in 2012 that Lionsgate was dumping Break Media.
But they didn’t, and now they are poised to make something off of the deal. Recently, it was reported that Break Media will see huge revenue gains (by as much as 50%) this year in addition to launching commerce component to their advertising business.
Lionsgate, based in Santa Monica, California, is no joke. Besides being number six on the list of most profitable movie studios in North America, Lionsgate also holds the distinction of be the most successful indie TV and film distribution in the U.S., Mexico and Canada.
And they distribute a lot of winners. Familiar with The Hunger Games (pictured above)? That was Lionsgate. Mad Men? Also Lionsgate. They also have 13,000 home video titles in the back catalog.
But Lionsgate knows where its bread is buttered, that’s why it is a strong short-term investment due to the Break Media profits and a great medium-to-long-term investment due to a trio of blockbusters scheduled for release in 2013, 2014 and 2015.The Hunger Games: Catching Fire (2013) Dirty Dancing (2013) I, Frankenstein (2013) The Hunger Games: Mockingjay – Part 1 (2014) The Hunger Games: Mockingjay – Part 2 (2015)