A revived approach and a sharp share move
Legendary Entertainment has restarted its effort to acquire Lionsgate, Bloomberg reported, and investors responded immediately. Lionsgate shares climbed more than 15% on Tuesday, a gain that carried the company's market capitalization to $3.6 billion. The report, which relied on unnamed sources, gave no details on the price or structure of the proposal. Representatives for both Legendary and Lionsgate declined to discuss the matter.[S1][S2][S3][S4][S5][S6][S7][S8]
The approach is not the first. Legendary, the production company behind the Dune films and A Minecraft Movie, had also been examining a Lionsgate acquisition last year. After Starz formally separated from Lionsgate in May 2025, Legendary made contact about a possible partnership. Lionsgate Studios, which holds the company's television and film production and distribution arms along with a library of more than 20,000 titles, has traded as a separate entity since that split.[S1]
Why a merger appeals to Legendary
Combining with Lionsgate would give Legendary the ability to release its own movies rather than depend on outside distributors. Lionsgate brings franchises that include John Wick, the Hunger Games series and Saw, plus a deep catalog that could feed both theatrical and streaming pipelines. Other parties have also looked at Lionsgate without going as far as a formal bid; Banijay and Mediawan are among those that expressed interest, and Banijay has just completed its merger with Britain's All3Media, now operating as Banijay Entertainment.[S1]
The financial picture behind the bid
Lionsgate's latest results give the suitor something to weigh. For the quarter ending June 2026, overall revenue rose 48%, and the movie division recorded income of $105 million, powered by the Michael Jackson biopic Michael, the studio's biggest box-office performer so far and the first biopic to pass $1 billion in theatrical release. The net loss attributable to shareholders narrowed to $28.8 million from $94 million a year earlier, even as the television unit saw revenue and profit fall.[S1]
The balance sheet shows $425.8 million in cash and equivalents against $1.9 billion in total debt as of June 30. Legendary's own ownership has shifted in recent years: in 2024 it bought out the stake held by Chinese conglomerate Dalian Wanda Group, leaving Legendary and private-equity firm Apollo Global Management in control. Apollo had taken a stake in Legendary in 2022 for $760 million. Lionsgate is due to report results for its fiscal 2027 second quarter, covering the three months ended Sept. 30, 2026, after the market closes on Thursday, Nov. 5.[S1]
