Thank you, Mr. Chair.
Just to give you an overview, I'm asking for a couple of days of hearings into the proposed takeover of Lions Gate film by U.S. shareholder investor Carl Icahn. I do believe this falls within the mandate of our committee, because Lions Gate is a key sector player.
At the outset, I want to say that this is not about squashing any takeover bids or whatever; it's an issue of ensuring that due diligence is done given the importance of Lions Gate in the Canadian film and television sector.
I'll give you the two players and why I think we need to move on it.
Lions Gate is the leading Canadian film company. It's an international success. They have a huge presence in production and distribution in English Canada, Quebec, and the United States. They've spent over $800 million on productions in Canada. In 2007, Lions Gate entered into a significant partnership with the Société générale de financement du Québec to bring more film and production to Quebec, with an investment of up to $400 million U.S.
They have distribution wings through Maple Pictures. They distribute the second-largest film library in Canada, the second-largest Cancon library, and the largest French language Cancon library. They distribute numerous Canadian productions.
The company is also a big player in the various industry organizations, such as CAFDE, Women in Film and Television, the Canadian Film Centre, and the National Screen Institute.
Any serious shakeup at Lions Gate would have massive repercussions across the film and television sector.
Carl Icahn has undertaken a hostile takeover. His net worth is $10.5 billion. It depends on who you speak to in the industry, but Icahn has a reputation at times of trying to buy companies, cut out pieces, and sell them off. He's saying he might not do that with Lions Gate, but we're not sure.
If you look up Gordon Gekko, the character from Wall Street, on the Wikipedia entry, it says that Gekko is loosely based on two characters. One was Ivan Boesky, who was very notorious and who was a criminal. Carl Icahn is not a criminal, but he was the other character because of his reputation for moving in on companies, maximizing shareholder value, and pulling out.
Regardless of whether Mr. Icahn is in charge, or the present Lions Gate board, this could have serious impacts for the Canadian film and television sector.
Under the rules it's up to the Minister of Canadian Heritage to ensure there's a net benefit to Canada. In March 2010, Mr. Icahn said he would be negotiating with the Minister of Heritage on a takeover of this operation. At the same time, Lions Gate is in negotiations to possibly leave Canada for good. They're concerned that our court provisions don't protect them with the poison pill they need to stop this hostile takeover. Either way we are facing a potential serious shakeup of the industry.
What I would like to propose is two or three days of hearings. I think we need to hear both sides so it's on the record, it's in the public realm. I'd like hear from the heritage minister and his officials in terms of how they would proceed with this, ensuring due diligence. They may be other industry players who would want to speak to this, but at this point I'm feeling we need to hear from the minister, from Mr. Icahn, and from the Lions Gate board.