Apollo Global Considers Acquisition of Lionsgate Studios Amid Talks of Synergy in Film Production

Apollo Global Management-backed Legendary Entertainment is reportedly considering acquiring Lionsgate Studios. Following Lionsgate's separation from Starz Entertainment, Legendary explored potential collaboration opportunities to assess the feasibility of a takeover. Lionsgate's shares rose 9% to $6.34. Apollo's one-year price target is $159.56, with an average brokerage recommendation of 2.0, indicating "Outperform" status. The estimated GF Value for Apollo in one year is $106.79, suggesting a downside of 27.47% from the current price.

Legendary Entertainment, backed by Apollo Global Management, is reportedly considering the acquisition of Lionsgate Studios. This development comes after Lionsgate finalized its separation from Starz Entertainment Corp. in May. The talks between the two companies are still in the early stages, but they have centered on a potential partnership to produce a few films to gauge how they would work together. If the acquisition proceeds, it would bring together Legendary, known for franchises like "Dune" and the "Monster-verse," with Lionsgate, which has popular franchises such as "John Wick" and "The Hunger Games."

Lionsgate's shares jumped 9% to $6.34 following the news reported by Bloomberg. The company's market capitalization is currently around $2 billion. The separation from Starz has positioned Lionsgate Studios to be a standalone entity, which could make it more attractive to potential acquirers. However, the studio's foreign film library, which it offloads to run a risk-free business, might pose a challenge for potential buyers. Legendary, which is already in the partial rights IP space, might find this less of an issue.

Apollo Global Management has a one-year price target of $159.56 for its shares, with an average brokerage recommendation of "Outperform." The estimated GF Value for Apollo in one year is $106.79, suggesting a downside of 27.47% from the current price. This indicates that investors are optimistic about the potential acquisition, which could bring together two major players in the entertainment industry.

The deal, if completed, would create a powerful combination of two studios with strong franchises and a deep content library. However, the success of the acquisition would depend on how well the two companies can integrate and leverage their respective strengths.

References:
[1] https://variety.com/2025/film/news/legendary-lionsgate-studios-acquistion-deal-talks-1236453689/
[2] https://www.thewrap.com/legendary-entertainment-eyes-lionsgate-studios-acquisition/
[3] https://www.bloomberg.com/news/articles/2025-07-11/apollo-backed-legendary-weighs-acquisition-of-lionsgate-studios
[4] https://www.livemint.com/companies/news/apollobacked-legendary-weighs-acquisition-of-lionsgate-studios-11752264920887.html
[5] https://deadline.com/2025/07/lionsgate-legendary-merger-talks-1236455370/