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January 31, 2006

Crash Scores Big In Oscar Nominations

Crash won nominations for Best Picture, Best Director, Best Supporting, Best Screenplay, Best Editing, and Best Song in the Oscar nominations announced this morning. While the investment implications are extremely limited, this a real feather in the cap for Lionsgate (LGF). Just a few months ago, the film was considered a real long shot for nominations but a concerted effort by the company to garner nominations paid off. Crash will shoot up the DVD sale and rental charts, providing a nominal boost to LGF's earnings. More importantly, management's success with the film from the theatrical run through home video and now Awards season establishes the studio as a place where producers, directors, actors, and screenwriters will want to take their best projects. Lionsgate has crashed the Oscar party that used to be hosted by Miramax. In the long run, that can help the stock price by supporting shareholder value through the prospects of a better pipeline of movie and TV projects.

Posted by Steve Birenberg at January 31, 2006 02:29 PM in LGF