The curtain has closed on the drama between independent movie distributors Image Entertainment Inc. and larger rival Lions Gate Entertainment Corp. Like many Hollywood tales, the little guy ended up thwarting the villain. Of course, like any good Hollywood story, there is still room for a sequel. Lions Gate Entertainment, which launched last year a $4 a share hostile bid for Image, failed to get its slate of nominees elected to Image’s board Tuesday, ending its latest effort to take over its rival. However, Lions Gate’s candidates secured between 38% and 43% of votes cast, compared with 56% for Image’s nominees. Lions Gate, the producer of Oscar-award-winning "Crash," remains Image’s second-largest shareholder with a 19% stake. For more about the hostile bid and the history of Image, from its early days as a purveyor of porn to its current business of distributing independent films on DVD, and the equally interesting history of Lions Gate's acquisition practices of the last five years, check out the cover story of this week's issue of The Deal. —Matthew Wurtzel
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