Lionsgate Studios Acquisition Talks with Legendary Entertainment

Legendary Entertainment, backed by Apollo Global Management, is considering an acquisition of Lionsgate Studios, a pure-play content company with diverse motion picture and television production and distribution businesses. The acquisition would bring together valuable brands and franchises, a talent management and production powerhouse, and a large film and television library.

Legendary Entertainment LLC, the independent film and TV studio behind the Dune trilogy and A Minecraft Movie, is reportedly considering a takeover of Lionsgate Studios Corp. [1]. The acquisition, if successful, would bring together two significant players in the entertainment industry, combining valuable brands, franchises, and extensive libraries.

Legendary, which is backed by Apollo Global Management, initially approached Lionsgate after the latter finalized its separation from Starz Entertainment Corp. [1]. The talks are centered on a potential partnership to produce a few films to gauge the compatibility of the two companies. If the partnership proves successful, Legendary could proceed with a full acquisition offer. Both companies have declined to comment on the matter.

Lionsgate, which owns popular franchises like John Wick, The Hunger Games, and Twilight, and has produced TV hits like AMC’s Mad Men, would provide Legendary with a theatrical distribution network. The acquisition would also offer Legendary access to Lionsgate's extensive library of films and TV shows.

Josh Grode, CEO of Legendary, has mentioned plans to use Apollo’s finances for takeovers in the entertainment industry worth billions of dollars [1]. Last year, Legendary and Apollo were linked to potential acquisitions of Paramount Pictures and Paramount Global, but these deals fell through.

In the meantime, Lionsgate has seen recent insider buying activity. Liberty 77 Capital L.P., a major shareholder, purchased 500,000 shares of Lionsgate Studios stock in July 2025, increasing their ownership by 1.35% [2]. This trade, along with several others, suggests a positive sentiment among significant shareholders.

Analysts have also weighed in on Lionsgate's stock. Several firms have raised their price targets and changed their ratings to "buy" or "outperform" [2]. The consensus rating among analysts is a "Moderate Buy" with a price target of $8.86.

The acquisition of Lionsgate by Legendary would be a significant move in the entertainment industry, potentially reshaping the landscape of film and TV production and distribution.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-11/apollo-backed-legendary-weighs-acquisition-of-lionsgate-studios
[2] https://www.marketbeat.com/instant-alerts/insider-buying-lionsgate-studios-corp-nyselion-major-shareholder-buys-500000-shares-of-stock-2025-07-09/