Production company Legendary Entertainment has submitted a takeover offer to acquire Lionsgate Studios, sparking a double-digit share surge and placing the genre studio back at the center of Hollywood merger activity ahead of its upcoming quarterly earnings report.
The acquisition bid, first reported by Bloomberg, would combine Legendary’s blockbuster movie slate with a venerable Hollywood library. Shares of Lionsgate jumped more than 15% following the report, driving the company’s market capitalization to $3.6 billion.
Representatives for both Legendary and Lionsgate declined to comment on the blind-sourced offer, and no deal terms have been publicly disclosed. The potential transaction values Lionsgate at $3.5 billion alongside $1.9 billion of debt following the company’s formal separation from Starz.
'Legendary Entertainment' Enters Talks To Acquire 'Lionsgate' – (via @KnightEdgeMedia)Today, a new report announced that Legendary Entertainment has submitted formal offers to acquire Lionsgate. The two studios have long partnered on a variety of films and have spoken of a m… pic.twitter.com/IeU8QWo6SB
Legendary Seeks Distribution Control as Studio Landscape Shifts
For Legendary, backed by private equity giant Apollo Global Management since its buyout of China-based Dalian Wanda, taking over Lionsgate offers a direct route to self-distribution. The production company behind the Dune
franchise and A Minecraft Movie
has traditionally relied on third-party studios to put its films in theaters.
Legendary’s recent theatrical releases, including the Street Fighter adaptation, have been distributed through Skydance’s Paramount Pictures under a multiyear agreement that began in September 2025. With Skydance navigating its own market scrutiny over inherited debt, securing an independent distribution network via Lionsgate represents a strategic pivot for Legendary CEO Josh Grode.
Lionsgate Library and Franchise Assets Drive Deal Interest
Lionsgate has spent years as one of Hollywood’s most discussed M&A targets. Since spinning off Starz in May 2025, the studio has operated as a standalone entity housing a 20,000-title film and television library that generates roughly $1 billion in annual revenue.
Beyond its core film output, the studio owns 3 Arts Entertainment, a management-production firm expanding into sports and creator representation, alongside library brands like Twilight
, La La Land
, and Dirty Dancing
.
Bloomberg: LEGENDARY HAS SUBMITTED A TAKEOVER OFFER FOR LIONSGATE // The bid revives a courtship that began in July 2025 and gives this morning mystery rip its catalystBloomberg reports Legendary Entertainment has submitted a takeover offer for Lionsgate, according to people… pic.twitter.com/0NyDemq6CN
That 1987 Patrick Swayze and Jennifer Grey feature served as the primary revenue driver for the studio’s library during its latest quarter, according to CEO Jon Feltheimer. The studio also recently saw massive theatrical returns from the Michael Jackson biopic Michael
, which grossed over $1 billion worldwide.
Lionsgate May Address Takeover Reports on November 5
Other entities, including European producers Banijay and Mediawan alongside Netflix, had previously explored interest in the studio without submitting formal bids.
Financial disclosures loom large over the rumblings. Lionsgate is scheduled to release its fiscal second-quarter financial results after the market close on November 5, 2026, a date when leadership may address the takeover reports directly.
In addition to its film slate, Legendary has developed major television titles such as Monarch: Legacy of Monsters
for Apple TV, Tomb Raider: The Legend of Lara Croft
for Netflix, and Drops of God
for Apple TV+. Meanwhile, Lionsgate’s television portfolio spans network and streaming hits including The Studio
on Apple TV, The Hunting Wives
on Netflix, Ghosts
on CBS, and The Rookie
on ABC.
$LIONLegendary Entertainment'tan Lionsgate'e Satın Alma TeklifiApollo Global Management destekli yapım şirketi Legendary Entertainment, rakibi Lionsgate Studios'u satın almak üzere resmi teklifte bulundu. Dune ve Minecraft filmlerinin arkasındaki şirket olan Legendary,… pic.twitter.com/Il3QigLVkj
Prior to the current takeover approach, Legendary had held intermittent discussions with Lionsgate since initially weighing a bid last year. Bloomberg reported that these renewed talks involve chief executive Josh Grode alongside private equity backing from Apollo and management. The studio combination would unite two legacy players, bringing together Legendary’s multi-platform production footprint with Lionsgate’s Santa Monica-based operations, which employ approximately 1,000 personnel following the Starz separation.