After a long period of internal strife, firings and battles, Alliance Atlantis Communications Inc. has decided to put its holdings in Motion Picture Distribution LP up for sale.
The company concluded that “it is not necessary for [Alliance Atlantis] to own an interest in [Motion Picture] in order for us to benefit from MPD's content and create value for our core broadcasting business.”
Along with co-producing CSI: Crime Scene Investigation, the company also operates 13 niche channels. It has a 51 percent stake in Motion Picture.
Analysts took a positive outlook on the news and believe the sale could bring around $9.50 a unit for the income trust. the units had dropped down to $5.20 during the summer. Recently it had rebounded to $8.17.
A major concern in the whole situation is the connection between Victor Loewy's contract expiring in 2008 and the simultaneous expiration of a contract with New Line - which is the company's largest client.
Some analysts believe that Alliance Atlantis will want a licensing deal with whoever buys the stake, to retain access to Motion Picture's library and new release content.
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