Vancouver: At press time, Lions Gate Entertainment appeared close to finally sealing a deal with Artisan Entertainment, after a two-year courtship.

While no one from Lions Gate or Artisan was able to comment on the deal, which was expected to be signed as early as Oct. 22 unless negotiations went astray, media reports peg the transaction at US$165 million, plus more than US$50 million in debt.

Lions Gate CEO Jon Feltheimer is expected to head both Lions Gate and Artisan in the merger, with Artisan chief Amir Malin negotiating a hefty severance.

Lions Gate recently raised US$67.5 million through a public offering of 25 million shares priced at US$2.70.

CTV is a co-owner of Artisan, which is best know as the distributor for the box-office success The Blair Witch Project. Lions Gate, which is operated out of Los Angeles offices, recently distributed Cabin Fever and will soon debut the feature Shattered Glass.

It was unclear at press time how the new Lions Gate deal affects Alliance Atlantis’ new Movie Distribution Income Fund and its four-year distribution deal with Artisan, estimated to be worth up to $10 million in earnings to unit holders. Representatives from Alliance Atlantis were unavailable for comment.

-www.lionsgatefilms.com

-www.artisanent.com

-www.allianceatlantis.com