Shares of Lionsgate surged more than 15% in afternoon trade on a report the company had received a takeover offer from Legendary Entertainment, which has been kicking the tires of the standalone studio for months.
Deadline reported Legendary’s interest in June of 2025 after Lionsgate Studios split with Starz. In a report today, Bloomberg said talks between the two had revived and Legendary, which is owned private equity giant Apollo and management, had submitted a bid.
A combination would give Legendary a theatrical distribution arm (it currently releases films through Skydance’s Paramount) as well as Lionsgate’s extensive library that throws off significant cash.
Lionsgate has been a potential target for years but shares have been boosted sharply by takeover speculation amid rapid industry consolidation. After today’s runup, the stock is trading at over $12, about double its 52-week high.
Lionsgate declined to comment.
More to come