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Shares of Lionsgate surged 14% Tuesday connected merger chatter, past fell after-hours arsenic Netflix changeable down speculation that it was eyeing nan standalone studio.
“Netflix is not willing and is not pursuing Lionsgate,” a spokesperson for nan elephantine streamer said bluntly.
Lionsgate Studios separated from Starz successful May of 2025, positioning some companies arsenic axenic play acquisition targets. Lionsgate had agelong been considered a “free radical” (term coined by John Malone) successful nan intermezo space. With nan split, it sought much optionality and a higher banal price.
The banal has performed. Lionsgate Studios shares, which were trading astatine astir $6 erstwhile nan institution separated, ended nan time astatine complete $16 — backtracking immoderate (3.5%) successful precocious trading aft Netflix rained connected nan parade.
The optionality is still being tested.
Lionsgate CEO Jon Feltheimer has acknowledged nan workplace lacks standard compared to Hollywood majors. But arsenic nan municipality hunts for IP, nan institution has immoderate large franchises for illustration John Wick and a beardown slate crossed movie and television.
Box agency juggernaut Michael is almost astatine a cardinal dollars pinch a 2nd movie connected nan life and profession of nan King of Pop successful nan works. The Hunger Games: Sunrise On nan Reaping will deed this fall. Having conscionable completed filming, Mel Gibson’s two-part The Resurrection Of The Christ is teed up for outpouring of 2027 and 2028.
“Lionsgate has been a consenting seller astatine nan correct price. But, successful nan past, whenever they sewage close, they were asking much than nan marketplace was fresh for,” says 1 Wall Streeter.
The mobility seems to beryllium whether nan substantially higher banal value will proceed to beryllium a deterrent moreover amid success. There person besides been concerns that immoderate authorities to to titles successful its extended room are entangled aliases shared pinch different entities — thing nan institution has pushed backmost connected successful nan past.
Lionsgate declined to comment.
Netflix shares, meanwhile, closed down 4% astatine astir $79 today.
The banal has fallen since nan streamer won and mislaid Warner Bros. and tends to return a deed pinch each caller woody rumor. Investors person grown wary that aft truthful agelong pinch small to nary M&A, Neflix brass now believes it needs an acquisition. The streamer has insisted that Warner Bros. was an unnusal asset, and moreover that was a “nice to have,” not a “need to have” deal.
The streamer walked distant from WBD pinch a $2.8 cardinal breakup interest aft declining to outbid David Ellison’s Paramount.
A rep for Netflix told Deadline it is not willing successful acquiring Imax either arsenic nan large surface exhibitor is yet different institution presently exploring strategical options. There’s been speculation that backstage equity is simply a apt purchaser but Deadline hears Imax’s longtime slope Raine is fielding liking from a scope of strategical buyers and others successful nan intermezo space.
Imax declined to comment.
According to sources acquainted pinch nan situation, Netflix did not bid for Roku, which connected Monday announced plans to waste itself to Fox Corp.
Deadline has heard nan streamer would perchance beryllium willing successful Sony Pictures. In fact, Netflix would beryllium acold from unsocial if nan Culver City-based workplace was for waste — but it is not. SPE declined to remark but genitor Sony Group a fewer years agone unveiled what it called a caller Creative Entertainment Vision that puts nan section successful nan halfway of its firm beingness and has been adamant that it’s keeping nan business.
Wall Streeters had predicted a activity of consolidation could reconfigure nan manufacture backmost erstwhile Comcast announced plans to rotation disconnected Versant and WBD to abstracted studios and streaming from world networks. Big summons deals announced aliases closed since past see Paramount-Skydance, Paramount-WBD, Charter-Cox, Nexstar-Tegna (state Attorneys General sued to artifact this one) and Fox-Roku. More are apt to come.
