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Summit, Lionsgate circling each other for possible merger

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Lionsgate and Summit Entertainment, two of the largest independent film studios in Hollywood, are discussing a possible merger, EW has confirmed. The deal makes a great deal of sense for both parties. Lionsgate has struggled this year with a series of high profile box office disappointments including Conan the Barbarian and Warrior, but has a considerable library of titles and the potential blockbuster franchise The Hunger Games set to launch next year. Summit, meanwhile, is still a relatively young studio with a comparatively smaller stable of titles to its name — but the Twilight franchise still looms large, with the final chapter, Breaking Dawn — Part 2, due next year. The talks, however, are in the very early stages, and other suitors for the studios remain possibly in the offing.

TheWrap first reported the story.