Legendary Entertainment, backed by private equity giant Apollo Global Management, is in discussions to acquire Lionsgate Studios, according to reports from Bloomberg, in what could mark another significant chapter of consolidation in the entertainment industry. The talks, which are still in early stages, come as Lionsgate continues to pursue a divestiture of its studio business to unlock shareholder value and focus more sharply on its media networks, including Starz.
The discussions center around Lionsgate Studios, which encompasses the company’s motion picture and television production and distribution arms. In fiscal year 2024, Lionsgate reported studio revenues of approximately $1.8 billion, underscoring the scale of the assets in play. Legendary, known for producing blockbuster franchises such as “Dune,” “Godzilla vs. Kong,” and “The Dark Knight” trilogy, is seeking to expand its footprint and gain greater control over production and distribution capabilities.
While neither company has disclosed financial terms, analysts estimate the value of Lionsgate Studios could exceed $4 billion, depending on which assets are included in the sale. Sources stressed that no deal has been finalized and negotiations could still fall through or lead to a partnership rather than a full acquisition.
Lionsgate has been working toward a separation of its studio business from its media networks since at least late 2022, with CEO Jon Feltheimer stating previously that such a move would allow the company “to pursue strategic and financial opportunities that maximize value for our shareholders.” Meanwhile, Apollo, which acquired a minority stake in Legendary in 2022, is positioning the company to compete at scale with major Hollywood studios by bolstering its content library and global distribution infrastructure.
Industry observers note that Legendary’s interest in Lionsgate reflects the ongoing imperative in Hollywood to secure access to IP and production pipelines, particularly as streaming platforms continue to drive demand for premium content. For Lionsgate, the talks could pave the way to streamline operations and unlock capital for further investments in its core media networks business.
Both companies declined to comment on the specifics of the discussions. However, people familiar with the matter emphasized that the talks underscore strong market confidence in the enduring value of studio assets, even amid a shifting media landscape.