Legendary Submits Takeover Offer for Lionsgate, Bloomberg Reports

Legendary Entertainment, the production company behind the "Dune" and "A Minecraft Movie" franchises, has submitted an offer to acquire Lionsgate, according to a Bloomberg report published Tuesday, Oct. 20, that cited people familiar with the matter. Both companies declined to comment on the report, which revived on-and-off acquisition talks between the two that date back to last year.

Lionsgate shares rose more than 15% in Tuesday trading after the report, Deadline reported, with the stock trading above $12, about double its 52-week low. Variety reported that the gain pushed Lionsgate's market capitalization to $3.6 billion and that the Bloomberg report did not specify deal terms.

What Was Reported

Bloomberg reported that talks between Legendary and Lionsgate had resumed and that Legendary had submitted a bid. Legendary is led by chief executive Josh Grode and is owned by private equity firm Apollo Global Management and company management, according to Deadline and TheWrap. TheWrap reported that a Lionsgate spokesperson declined to comment and that representatives for Legendary and Apollo did not immediately respond to its request for comment.

Legendary first explored a potential acquisition of Lionsgate in 2025, after Lionsgate Studios separated from the network and streamer Starz, according to Deadline, Variety and TheWrap. Variety reported that Starz formally separated from Lionsgate in May 2025 and that Lionsgate Studios, which includes its film and television production and distribution divisions and a library of more than 20,000 titles, has traded as a separate public company since then.

Why Lionsgate Matters to Legendary

A combination would give Legendary a theatrical distribution arm along with Lionsgate's library, Deadline reported, and Variety said a merger could allow Legendary to self-distribute its films. Legendary currently releases films through Paramount; its latest release, "Street Fighter," opened to $50 million globally over the Oct. 16-18 weekend, according to The Hollywood Reporter. The Hollywood Reporter also noted that Legendary is scheduled to release "Dune: Part Three" with Warner Bros. in December.

Lionsgate's film franchises include "John Wick," "The Hunger Games" and "Saw," and its library includes "Twilight," "La La Land" and "Dirty Dancing," according to Variety and The Hollywood Reporter. The Hollywood Reporter said the Santa Monica-based company has about 1,000 employees, citing its most recent 10-K filing, and that it also owns the management and production company 3 Arts Entertainment.

The studio's upcoming slate includes "The Hunger Games: Sunrise on the Reaping," set to open in mid-November, according to The Hollywood Reporter, which also reported that Lionsgate has wrapped production on the reboot "John Rambo," starring Noah Centineo, and has Mel Gibson's two-part film "The Resurrection of the Christ" scheduled for next year.

Recent Financial Results

For the quarter ended June 2026, Lionsgate's overall revenue rose 48% and its film segment posted $105 million in income, driven by the Michael Jackson biopic "Michael," according to Variety. Variety reported that "Michael" is the studio's highest-grossing film to date. The company's quarterly net loss attributable to shareholders narrowed to $28.8 million from $94 million a year earlier, and as of June 30 it held $425.8 million in cash and equivalents and $1.9 billion in total debt, Variety reported.

Lionsgate is scheduled to report results for its fiscal second quarter, covering the three months ended Sept. 30, after the market closes on Thursday, Nov. 5, according to Variety.

Other Interested Parties

Lionsgate has faced pressure from activist investor Anson Funds to pursue a sale. The Hollywood Reporter reported that Anson holds a 1.5% stake and recently met with Lionsgate's board to discuss mergers and acquisitions, citing a source. TheWrap reported that Anson has urged Lionsgate to embrace AI or sell itself.

Other companies that have expressed interest in Lionsgate without submitting formal takeover offers include Banijay and Mediawan, according to Variety; TheWrap also named France's Bollore Group. TheWrap reported that Netflix has previously told the outlet it is not interested in acquiring Lionsgate.

In 2024, Legendary bought out the stake in the company held by China's Dalian Wanda Group, a deal that left Legendary and Apollo in control, according to Variety, which reported that Apollo first acquired a stake in Legendary in 2022 for $760 million.