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Lionsgate’s $21.4 Million Investment in Break.com: Option To Buy Rest

By Rafat Ali - Mon 12 Nov 2007 08:41 PM PST

Earlier this summer, Break.com, the online video site based in Beverly Hills, announced an undisclosed amount of investment from Lionsgate, the major independent film and TV studio....which Variety later reported around $21 million. The exact amount and more details were revealed in a 10-Q filed on Friday by Lionsgate: It was about $21.4 million investment, with Lionsgate getting about 42 percent of the company. “The aggregate purchase price was approximately $21.4 million, which included $0.5 million of transaction costs, consisted of the issue of 1,890,189 of the Company’s common shares,” the filing said.

Also, Lionsgate has a call option which is “exercisable at any time from June 29, 2007 until the earlier of 30 months after June 29, 2007 or a year after a change of control, to purchase all of the remaining 58 percent equity interests (excluding any subsequent dilutive events), including in-the-money stock options, warrants and other rights, of Break.com for $58 million in cash or common stock, at the company’s option.”

Posted in: Social Media, Video Sharing, VC+M&A

Tags: break, lionsgate,


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