Summit investors considered major expansion before selling

Before deciding to sell the company to Lions Gate on Friday, investors in Summit Entertainment considered making a significant cash infusion that could have turned the "Twilight" studio into a much bigger entertainment player.

With the final "Twilight" movie ending this year, Summit's investors, who control about 70% of the studio, with the other 30% held by management, found themselves at a crossroads in late 2011.

"We were at a critical time in Summit’s development where either the company needed to expand into television and library acquisition and other media platforms so it was not singularly reliant on film, or take advantage of the very strong financial position the company was in [to sell]," said Jim Berk, chief executive of film production and finance company Participant Media, one of Summit's largest investors.

Berk said his firm and fellow investors, including private-equity fund operator Suhail Rizvi's Rizvi Traverse Management, were "prepared to inject more funds into the company to dramatically expand its operations."

Nala Investments chief Emilio Diez Barroso, another investor in the "Twilight" studio, said that in addition to well-known flirtations with buying Miramax films and Metro-Goldwyn-Mayer, Summit also considered acquiring several other film libraries or international businesses to help it expand globally.

But beginning this fall, after Lions Gate's former top shareholder Carl Icahn, an opponent of management who made any acquisition very difficult, sold his stake, Summit found itself fielding purchase offers.

"Multiple folks preempted our ability to aggressively get into the marketplace to look at investments,"  Berk said.

Along with Lions Gate, other interested buyers included private-equity firm Colony Capital and a consortium of Chinese investors.

Colony, which wanted to merge Summit with its Miramax film library, ended up as the final bidder alongside Lions Gate in late 2011.

With the Lions Gate deal, Summit's investors get a payout of about $350 million in cash on top of a $200-million dividend they received early last year. They also get an equity stake said by insiders to be close to 5% in a company that combines Summit with Lions Gate's upcoming "Hunger Games" film series and its television and digital operations.

But things could have easily gone a different way.

"It's not that that the Lions Gate deal was more appealing," Diez Barroso said. "It was just the one that got to the finish line with the terms we were looking for."

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Photo: Summit Entertainment Co-Chairmen Patrick Wachsberger and Rob Friedman at their Santa Monica office. Credit: Lawrence K. Ho / Los Angeles Times

'Twilight' saga may continue after fifth film, Lions Gate CEO says

"The Twilight Saga: Breaking Dawn Part 2" may not be the end of Bella, Edward and Jacob's on-screen journey, according to the head of the franchise's new Hollywood home.

The chief executive of Lions Gate Entertainment, which on Friday acquired "Twilight" film studio Summit Entertainment for $412.5 million, said he believes the film franchise will continue to have value to his company,even after the Nov. 16 release of the fifth movie completes the adaptation of author Stephenie Meyer's four books.

"I'm anticipating 'Breaking Dawn Part 2' being $700 million-plus in worldwide box office," said Jon Feltheimer, predicting the next film would slightly outdo the $697 million global take of "Breaking Dawn Part 1."

Asked whether the franchise would continue in some form for Lions Gate, he added, "It's hard for me to imagine a movie that does $700 million-plus doesn't have ongoing value. It's an amazing franchise that they have done a great job of maintaining with absolutely no deterioration. So the simple answer is 'Boy I hope so.'"

One person close to the acquisition deal but not authorized to speak publicly suggested that because Lions Gate, unlike Summit, has a television production unit, it could adapt "Twilight" for the small screen.

Asked whether there was a possibility of bringing "Twilight" to television, Feltheimer answered, "I would certainly hope so."

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Photo: Kristen Stewart and Robert Pattinson in "The Twilight Saga: Breaking Dawn Part 1." Credit: Andrew Cooper / Summit Entertainment.

Lions Gate acquires Summit Entertainment for $412.5 million

Bringing Hollywood's two biggest independent film studios and the blockbuster young adult franchises "Twilight" and "The Hunger Games" into one powerful entity, Lions Gate Entertainment has agreed to acquire Summit Entertainment for $412.5 million in cash and stock.

The two Santa Monica-based companies have engaged in on-and-off merger talks since late 2008 as Lions Gate has sought to bolster its library of film and TV properties and Summit's investors have tried to find a way to cash in on the lightning-in-a-bottle success of its "Twilight" movie series, which has grossed $2.5 billion worldwide over four films.

The acquisition will provide a windfall to Summit's investors, among them Ebay co-founder Jeff Skoll's film company Participant Media and private equity fund operator Suhail Rizvi's Rizvi Traverse Management. Summit's investors previously received a $200-million dividend as part of a recapitalization in early 2011.

However, they have been eager to find a buyer for the studio before the final "Twilight" movie is released later this year, according to people familiar with the matter but not authorized to speak publicly.

Outside of "Twilight," however, Summit has failed to find much success on the big screen, with a list of flops that include the Brendan Fraser comedy "Furry Vengeance," Mel Gibson's "The Beaver" and "A Better Life," a well-reviewed drama about Mexican immigrants living in Los Angeles. The disappointments far outweighed a few modest successes such as the action movie "Red."

The deal is a coup for Lions Gate Chief Executive Jon Feltheimer and Vice Chairman Michael Burns, who have over the last decade made several acquisitions to bolster the size of their company and better compete with larger studios in the increasingly global entertainment business.

Though employment contracts have not yet been finalized for Summit co-chairmen Rob Friedman and Patrick Wachsberger, the pair are expected to become heads of Lions Gate's motion picture group, according to people familiar with the matter but not authorized to speak publicly.

Lions Gate's current film group president Joe Drake, who was already under pressure after a weak showing at the box office over the last year, is expected to depart, those people said. However, in an interview, Feltheimer said Drake will continue to shepherd "The Hunger Games" through to its March 23 release.

Layoffs are expected at both companies as they merge redundant departments in their film operations such as marketing, production and distribution. Feltheimer declined to specify how many there would be. Lions Gate has approximately 500 employees and Summit has about 160.

The combined company will continue to release movies under the Summit label.

2012 could be a huge year at the box office for the combined company, with "The Twilight Saga: Breaking Dawn Part 2" coming in November and the first of four planned "Hunger Games" movies, based on hit young adult literary series, coming in two months.

The latter is Lions Gate's biggest movie bet ever, with a production budget of nearly $100 million, and an explicit attempt to try and duplicate the success of "Twilight." The combined studio will undoubtedly seek to use the two properties to promote each other.

The combination of the two studios comes at a time of ongoing consolidation in the economically challenged entertainment sector that has seen the number of studios making and releasing movies shrink amid falling DVD sales and continued efforts to transition to digital distribution.

In an announcement issued Friday, Lions Gate said the majority of the purchase price would be funded by cash on hand at Summit. The rest will be paid for by $55 million of Lions Gate's cash reserves, $45 million from new debt issued by Lions Gate, and another $20 million of cash or stock that Lions Gate must issue within 60 days.

Summit comes into the deal with about $200 million in net debt, which is secured by that studio's existing assets and will not be assumed by Lions Gate.

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Photo: Robert Pattinson and Kristin Stewart in "The Twilight Saga: Breaking Dawn Part 1." Credit: Andrew Cooper / Summit Entertainment

'Twilight' studio Summit poised for acquisition by Lions Gate

Lions Gate Entertainment is putting the finishing touches on a deal to acquire rival independent studio Summit Entertainment in a deal worth about $700 million, according to several people with knowledge of the matter who were not authorized to speak publicly.

The agreement, which is expected to be announced within days, would bring together the studio behind "Saw," "Mad Men" and the upcoming "The Hunger Games" with the maker of the hugely successful "Twilight" films. The two companies are headquartered within blocks of each other in Santa Monica.

The consolidation of the studios probably would be bad news for filmmakers in Hollywood, as it would mean one fewer buyer of scripts and source of employment. But the combined company would be a more powerful player as it goes up against larger rivals such as Sony Pictures and Warner Bros. in the increasingly competitive and global entertainment market.

Lions Gate will pay just over $350 million in cash and issue about $50 million in new stock to the owners of Summit, the people said. In addition, Summit will still owe between $200 million and $300 million in debt once it becomes a subsidiary of Lions Gate.

The deal is expected to immediately add to Lions Gate's bottom line, as Summit is currently profitable based primarily on the cash generated by "Twilight" sequels.

The expectation of a deal comes after about two months of heated negotiations that included rival bidder Colony Capital, a private equity firm that is a partial owner of independent film studio Miramax, which Colony wanted to merge with Summit.

One person close to the talks said that Colony, which is controlled by billionaire real estate investor Tom Barrack, made an all-cash deal of the exact same value as Lions Gate's. However, Summit investors preferred taking some Lions Gate's equity, which would give them ownership of about 5% of the combined company.

Earlier this week, Summit entered exclusive talks with Lions Gate, putting Colony on the outs.

However, the people with knowledge said, it's still possible that Colony could come in with a higher offer at the last second, a bid that Summit would have to consider. Barrack is believed to be partnering on the Summit bid with the Qatari Investment Authority, which also owns part of Miramax.

Should the deal close, it would be a victory for Lions Gate Chief Executive Jon Feltheimer and his No. 2, Vice Chairman Michael Burns, who have long eyed Summit and held on-and-off talks to acquire it since 2008.

The duo would remain in charge of Lions Gate after the acquisition, while Summit chiefs Rob Friedman and Patrick Wachsberger would take charge of the combined studio's motion picture group. As at Summit, Friedman is expected to focus on production marketing while Wachsberger oversees international business.

It's not yet clear what their roles would mean for Lions Gate's current motion picture group president, Joe Drake. Some people close to both companies have speculated that Drake may leave as a result of the deal.

If Friedman and Wachsberger bring over most of their staff from Summit, as several insiders suggested is likely, that could mean other other film executives and staffers at Lions Gate would lose their jobs as well. Already, people who work at Lions Gate have said there is widespread concern there about how many people might end up unemployed after an acquisition of Summit.

Lions Gate probably won't want to shake up its operations immediately, however, as "The Hunger Games," its biggest movie bet ever, will be released in March. The nearly $100-million production is the first of four planned films based on the bestselling young adult books and has been touted by analysts as the potential source of hundreds of millions of dollars in profits for the company.

The fifth and final "Twilight" movie, meanwhile, will be released in November.

Some details of the talks between Lions Gate and Summit were previously reported by Deadline and Bloomberg.

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Top photo: Jennifer Lawrence and Liam Hemsworth in a scene from "The Hunger Games." Credit: Murray Close / Lionsgate. Bottom photo: Kristen Stewart and Robert Pattinson in "The Twilight Saga: Eclipse." Credit: Kimberley French / Summit Entertainment.

'Twilight' studio Summit sale on hold until 2012

"Twilight" studio Summit Entertainment is still deep in negotiations with two potential buyers, but won't reach an agreement with either before the end of 2011.

The Santa Monica firm remains in talks to sell itself to fellow studio Lions Gate Entertainment and private equity firm Colony Capital, a co-owner of Miramax, people familiar with the matter but not authorized to speak publicly said.

Executives at Summit had hoped to close a deal by the end of the year because of certain tax and financial advantages, two of the people said, but that has virtually no chance of happening by Saturday.

Instead, talks with both parties have slowed down during the holiday season and are expected to pick back up next week. Summit is likely still looking to close a deal as soon as possible, as it is currently in a good position with one more "Twilight" sequel yet to be released and a significant pile of cash that, one knowledgeable person said, will be distributed to investors in the event of a sale.

Both Lions Gate and Colony are said to be offering about $350 million to $400 million to acquire Summit, along with the assumption of roughly $200 million in debt.

If Lions Gate were to take control, Summit chiefs Rob Friedman and Patrick Wachsberger are expected to run the merged studio's motion picture group, sources close to the negotiations said. If Colony, which is led by billionaire investor Tom Barrack, were to be the winning bidder, Summit would likely be merged with Miramax. In that scenario, it's likely that Friedman and Wachsberger would run the combined company, possibly alongside Miramax CEO Mike Lang.

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Photo: Robert Pattinson and Kristin Stewart in "The Twilight Saga: Breaking Dawn Part 1." Credit: Andrew Cooper / Summit Entertainment

Box Office: 'Mission: Impossible' sequel is No. 1 Christmas pick [Updated]

Moviegoers chose to accept Tom Cruise's "Mission" at the box office this weekend.

"Mission: Impossible -- Ghost Protocol," the fourth installment in the action franchise, grossed $46.2 million over the holiday period beginning Friday and ending Monday, according to an estimate from distributor Paramount Pictures. The movie -- budgeted at about $145 million -- debuted in limited release 11 days ago and has since racked up an impressive total of $78.6 million in ticket sales.

Warner Bros.' "Sherlock Holmes: A Game of Shadows," which opened last weekend, claimed the No. 2 spot. The $125-million production collected a soft $31.8 million over the long weekend, bringing its overall tally to $90.6 million. Twentieth Century Fox's $80-million "Alvin and the Chipmunks: Chipwrecked," which has also been in theaters for two weeks, came in with a disappointing $20 million. Both movies were expected to be big winners over the Christmas holiday, but each is so far lagging significantly behind their franchise predecessors in ticket sales.

David Fincher's highly anticipated "The Girl With the Dragon Tattoo" -- based on the first book in a trilogy of novels by Swedish author Stieg Larsson -- did decent business. The Sony Pictures movie opened Tuesday night, but grossed $19.4 million over the holiday weekend, raising its overall total to $27.7 million. The R-rated film had a budget of about $100 million, according to an individual close to the production, though a Sony spokesperson said the cost was $90 million.

Two new films directed by Steven Spielberg debuted to mixed results.

"The Adventures of Tintin," a 3-D animated family movie adapted from a popular Belgian comic book, did not prove exceptionally popular with American audiences. Although the film has been a hit overseas, so far collecting over $240 million abroad, it only grossed $16.1 million domestically this long weekend. Since opening on Wednesday, "Tintin," which cost Paramount and Sony between $150 million and $175 million to make, has sold $24.1 million worth of tickets. Paramount, which is releasing the film in the U.S. and Canada, is hopeful that the movie will follow in the footsteps of last Christmas' "Yogi Bear." That family flick ultimately grossed over $100 million domestically.

Meanwhile, Spielberg's epic "War Horse" fared better, debuting on Sunday and grossing $15 million in sales over two days. The film attracted an older audience, 31% of whom were over the age of 50. Those who saw the $70-million DreamWorks production liked it, assigning it an average grade of A-, according to market research firm CinemaScore.

Cameron Crowe's "We Bought a Zoo" earned an even better grade -- an A -- but moviegoers did not show up in as large numbers to see the family drama. The movie starring Matt Damon and Scarlett Johansson, which cost Fox about $50 million to produce, opened on Friday and grossed $15.6 million through Monday. The film also appealed to an older demographic, as 59% of the crowd was age 25 or above, while 58% overall was female.

Of all the movies that opened over Christmas, the horror film "The Darkest Hour" was the least expensive, costing co-financiers Summit Entertainment and New Regency about $30 million to produce. That's good news, because it only grossed a weak $5.5 million over Sunday and Monday, and received a dismal C+ CinemaScore.

[Updated 1:45 p.m., Dec. 26: The "Mission: Impossible" sequel continued to soar overseas, grossing an additional $43 million from 45 foreign countries. The movie performed best in Korea and China, where it was No. 1 for the second weekend in a row. The film has now made about $24 million in each country respectively. Overall, the movie already has an international tally of $140 million. The third film in the franchise raked in over $260 million abroad in 2006, and it seems likely that the new fourth installment will far exceed that figure.

Here are the top 10 movies in the U.S. and Canada, based on their four-day grosses with exceptions as noted. Percentage drops are based on three-day grosses. International grosses are through Sunday only.

Summit management considering buyout of 'Twilight' studio [Updated]

As "Twilight" studio Summit Entertainment is immersed in negotiations with multiple parties to get acquired before the end of the year, a new bidder may have emerged: Summit itself.

Co-chairmen Rob Friedman and Patrick Wachsberger are putting together a management buyout plan in partnership with a private equity fund to take financial control of Summit, according to a person familiar with the matter but not authorized to speak publicly.

[Update, 12:31 p.m.: A person close to Friedman and Wachsberger who declined to be identified because of the privacy of ongoing discussions denied that a management-led buyout is in fact in the works.]

The plan would involve Friedman and Wachsberger buying out their current investors, which include private equity firm Rizvi Traverse Management and film financing and production company Participant Media. It would leave the two chiefs of Santa Monica-based Summit in control, as opposed to other proposals currently on the table that would merge the independent studio with Lions Gate Entertainment or Miramax Films.

Under the Lions Gate scenario, Friedman and Wachsberger would head Lions Gate's motion picture group while the company's Chief Executive Jon Feltheimer and Vice Chairman Michael Burns would remain in charge. At Miramax, the duo would have to work with that studio's Chief Executive Mike Lang and report to its investor Colony Capital, a Santa Monica private equity firm, which is leading an effort to acquire Summit.

Lions Gate and Colony are both offering $350 million to $400 million in cash and agreeing to assume about $200 million in debt to buy Summit, the person said.

It's not yet known how much the management-led buyout would be worth and whether it could best the other two bids on the table.

Other potential buyers have been contacting Summit and "kicking the tires," said several knowledgeable people who declined to be identified, but so far none has put together plans as serious as those of Lions Gate, Colony/Miramax or Friedman and Wachsberger.

Summit's owners appear eager to sell the company by the end of the year in part because potential buyers are interested in the one remaining "Twilight" film, but also because of the studio's strong cash position.

Hundreds of millions of dollars Summit would otherwise spend on film production and operations will be paid out to investors under the provisions of a refinancing plan closed last year, the knowledgeable person said.

A spokesman for Summit did not respond to a request for comment. Freidman and Wachsberger could not be reached for comment.

A spokesman for Participant did not respond to a request for comment and a spokesman for Rizvi could not be reached.

-- Ben Fritz

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Top photo: Summit Entertainment Co-chairmen Patrick Wachsberger and Rob Friedman at their Santa Monica office. Credit: Lawrence K. Ho / Los Angeles Times. Bottom photo: Kristen Stewart and Robert Pattinson in "The Twilight Saga: Eclipse." Credit: Kimberley French / Summit Entertainment.

Lions Gate, Summit homing in on key details for proposed merger

Lions Gate Entertainment and Summit Entertainment are homing in on key details of a merger plan as executives on both sides press to reach an agreement by the end of the year, said knowledgeable people who requested anonymity because the talks are private.

Under terms being discussed, Lions Gate ("Saw," "Precious") would acquire its Santa Monica neighbor Summit ("Twilight," "The Hurt Locker") for around $350 million to $400 million, consisting primarily of cash along with a small amount of stock, one of the people said. It would also assume roughly $200 million of Summit's debt. 

The stock payment would leave Summit's shareholders with a stake of approximately 5% in the combined company, the people said.

In addition, it's expected that Summit Co-Chairmen Rob Friedman and Patrick Wachsberger would lead the motion picture group of the merged studio, the people said. Both are experienced film executives, and Wachsberger has a particular expertise in international sales.

That scenario throws into question the future of Joe Drake, Lions Gate's motion picture president, who has headed film operations since 2007. He has had a difficult run recently, with three consecutive flops: "Conan the Barbarian," "Warrior" and "Abduction."

Lions Gate Chief Executive Jon Feltheimer would continue to head the studio, along with his longtime lieutenant, Vice Chairman Michael Burns.

The deal points have not been officially agreed to yet, the people said, and it's still possible that the merger won't occur or that the terms will change.

Summit has also recently held talks with private equity firm Colony Capital, a major stakeholder in Miramax Films since the independent studio was sold by Walt Disney Co. last year, said a person familiar with the talks but not authorized to discuss them publicly. Colony is considering making an investment in Summit and combining either its film library or all of its operations with Miramax. The news of those talks was first reported by Deadline.

If those talks become serious and increase the asking price for Summit, it could derail the merger talks with Lions Gate, said a person close to the discussions.

Summit and Lions Gate, two of Hollywood's largest independent studios, have held on-and-off talks about combining since 2008, with people close to both companies saying it would make sense to put together their complementary assets and consolidate those that overlap in an increasingly competitive industry. Summit is known for its strong foreign sales business, and Lions Gate has a growing television production business behind "Mad Men" and three sitcoms produced by Tyler Perry.

Both studios have film production and marketing operations that would probably face cuts when combined.

Talks have become heated of late as Summit appears eager to do a deal before the release of the fifth and final movie in the "Twilight" series, its largest cash cow, next November.

Lions Gate, meanwhile, is preparing for the March release of its own hotly anticipated young adult book adaptation, "The Hunger Games." The first of four planned movies comes out in March.

Because its stock has risen about 20% in the last three months and some of the value is based on anticipated revenue from "Hunger Games," Lions Gate does not want to issue a significant amount  of equity in a merger, diluting its share value in the process, people familiar with the matter said.

A deal between the two companies has become easier to put together in the last few months, since Lions Gate dissident shareholder Carl Icahn sold nearly all of his 33% stake in October.

-- Ben Fritz

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Photo: Jennifer Lawrence and Liam Hemsworth in a scene from "The Hunger Games." Credit: Murray Close / Lionsgate

Summit Entertainment, Lions Gate said to be back in merger talks

Lions Gate Entertainment and Summit Entertainment are back in merger talks that would combine two of Hollywood’s largest independent studios, according to people with knowledge of the negotiations who are not authorized to speak publicly.

Should a deal be consummated, it would bring together one of the movie industry’s most successful young adult franchises, Summit’s "Twilight," with one of the most highly anticipated new series, "The Hunger Games," from Lions Gate.

The two companies, headquartered around the block from each other in Santa Monica, have held on-and-off merger talks since late 2008, but were unable to resolve key issues of price and management control. The discussions have recently become more serious, the people close to the matter said.

Publicly traded Lions Gate, which has a market value of $1.08 billion, would have a larger stake in the combined entity. However, it's not clear exactly how privately held Summit, which raised $750 million of debt in March, would be valued and whether Lions Gate would pay cash or stock. Another question is what role Summit's co-chairmen, Rob Friedman and Patrick Wachsberger, would play in the combined entity, which would be led by Lions Gate Chief Executive Jon Feltheimer.

One impediment in the past was the influential position held by Lions Gate's then-largest shareholder, Carl Icahn, who attempted to seize control of the studio and oust Feltheimer and Vice Chairman Michael Burns. In September, Icahn sold most of his shares as part of a settlement with the company.

Since Icahn's exit, Lions Gate's stock has risen substantially, from less than $7 in September to $8.53 on Monday.

Summit's primary value lies in the “Twilight” movie series. Three films released since 2008 have grossed $1.8 billion worldwide and the fourth successfully opened the weekend before Thanksgiving, with one more film scheduled to debut next November. Most of the studio’s other films have fared poorly, though it has a well-established division that sells international distribution rights to pictures.

Lions Gate’s primary asset is its library of about 13,000 films and television episodes, the value of which would be boosted by the addition of "Twilight" alongside "Hunger Games."

It also has a small but growing TV production business that makes "Mad Men" and "Weeds." A number of Lions Gate’s recent movies have flopped, including a remake of "Conan the Barbarian" and "Abduction," starring Taylor Lautner of "Twilight."

The talks were first reported by Bloomberg.

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Photo: Stars Robert Pattinson and Taylor Lautner at the premiere of "The Twilight Saga: Breaking Dawn -- Part 1" in Berlin. Credit: Markus Schreiber / Associated Press

Box office: 'Twilight,' 'Muppets' besting 'Hugo,' 'Arthur Christmas'

It's turning into a bountiful Thanksgiving weekend for vampires and Muppets and a tough one for Christmas elves and little boys in train stations.

"The Twilight Saga: Breaking Dawn -- Part 1" is easily topping the holiday weekend box office, followed closely by "The Muppets," the strongest-performing new film to open Wednesday. But the animated "Arthur Christmas" and Martin Scorsese's 3-D "Hugo" are lagging far behind with soft starts.

"Breaking Dawn," the fourth of Summit Entertainment's planned five movies based on the bestselling books, sold $20.3 million worth of tickets on Wednesday and Thursday and is on track to collect roughly $56 million by Sunday. "The Muppets" grossed $12.5 million in its first two days in theaters and should get to about $40 million by Sunday.

Although those are the strongest numbers posted at the box office this weekend, neither is particularly impressive. "Breaking Dawn" is on track to collect about $10 million less over the holiday weekend than the third "Twilight" movie, "New Moon," which opened the Friday before Thanksgiving in 2009. And "The Muppets" appears likely to come in below estimates based on pre-release surveys that indicated it would take in about $45 million.

The weekend's biggest disappointment so far is "Arthur Christmas." Sony Pictures' animated film, made in collaboration with Britain's Aardman Animations, took in only $4.3 million its first two days in theaters. The well-reviewed film, which cost approximately $100 million to produce, will gross about $15 million by Sunday.

"Hugo," Scorsese's adaptation of the children's book about a boy building a mechanical friend in a Parisian train station, has generated about $4 million since Wednesday and will likely sell $15 million worth of tickets by the end of the weekend. That's roughly the same as "Arthur Christmas," but playing at about 2,000 fewer theaters than its animated rival. 

Financier GK Films spent significantly more to make "Hugo," though -- close to $150 million, according to the company, and around $170 million, according to a person close to the picture. That means the film, which is being released and marketed by Paramount Pictures, will ultimately have to open on more screens and perform significantly better to become a domestic box-office success.

-- Ben Fritz

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Photo: Kristin Stewart and Robert Pattinson in a scene from "The Twilight Saga: Breaking Dawn -- Part 1." Credit: Andrew Cooper / Summit Entertainment