This past Tuesday investment bank Caris & Co downgraded shares in Lionsgate stock from “buy” to “above average”. Â The reasoning? Â The less than desirable opening for ‘The Spirit’, which pulled in only $10.4 million over the Christmas weekend. Â As of January 4th, it had made an estimated $17.7 million domestic.
This comes hot off the heels of another Lionsgate flop, ‘Punisher: War Zone’, which made $8.8 million worldwide, had an estimated budget of $35 million, and was pulled from theaters faster than ludicrous speed.
“Explanation for the weakness came primarily from a smattering of negative reviews, coupled with heavy competition from ‘Marley & Me’, which opened with a stellar $37.0 million in gross receipts,” Caris analyst David Miller said in a message to clients.
Miller went on to say that the future health of Lionsgate might well be tied to the release of ‘My Bloody Valentine 3D’ which opens on January 16th. Â
Lionsgate’s co-chief operating officer Joe Drake said in a New York Times interview about ‘My Bloody Valentine 3D’, “We see 3-D horror as financially lucrative and creatively exciting. We want to break some new ground here in R-rated fare.”
Lionsgate might be able to hold out until ‘Saw VI’, scheduled for release next October. Â Unfortunately, that franchise might be slipping financially, as ‘Saw V’ ended up being the worst performer in the series since the first one in 2004. Â Still, ‘Saw V’ made $103 millions worldwide off a $10.8 million budget.
What do you think? Â Is Lionsgate in financial trouble? Â Will ‘My Bloody Valentine 3D’ make as much as they expect? Â Is ludicrous speed really that fast? Â Let us know by commenting below!
Sources: IMDB Studio Briefing, NY Times
