Here's Why Lions Gate Isn't Splitting 'Allegiant' Into Two Films...Yet

Lionsgate has confirmed a 2016 release date for Allegiant, the third in its 'Divergent' movie franchise. Here's why they're not planning two films just yet.

Jan 11, 2014 at 1:08PM

Call me crazy, but Lions Gate (NYSE:LGF) and Summit Entertainment sure seem confident their promising new Divergent movie franchise will succeed.

Despite the fact the first film is still set to debut in March, Lions Gate surprised industry watchers recently by confirming the release date of the third movie, Allegiant, which is now slated to hit theaters on March 18, 2016.

But while Lions Gate is certainly making a statement by setting Allegiant's date so far in advance, some are wondering why it hasn't announced plans to split the film in two. After all, that's what they've done with the final books for their other significant novel-based franchises in both Twilight and The Hunger Games. So, like it or not, it seems reasonable to assume they'd want to do the same with Allegiant this time around.

But according to the Fool's Steve Symington in the following video, Lions Gate is likely just being prudent until it gets a better idea of exactly how well audiences respond to Divergent this March.

And remember, Steve says, while Divergent's production budget hasn't been officially confirmed, analysts have estimated it to be in the $80 million range. That's on par with the $78 million Lions Gate spent to bring The Hunger Games to life in March 2012. As a result, and considering Lions Gate increased the budget for The Hunger Games: Catching Fire to $130 million after the first film proved a huge success, it's safe to assume we'll see something similar happen if Divergent proves anywhere near as lucrative.

To hear Steve's full take on what this means for both Divergent fans and Lions Gate investors going forward, check out the video below.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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