Lionsgate Studios, the entertainment company behind the Hunger Games and John Wick franchises, is exploring a sale and has attracted takeover interest from European media powerhouses Banijay and Bollore Group, according to latest reports from Reuters. The company, which has a market value of about $3.8 billion, has been working with an investment bank to evaluate inbound approaches. Banijay's Marco Bassetti and Jeff Zucker are weighing a bid, though any formal approach from that quarter may be delayed while the company works through its integration of All3Media, which it merged with earlier this year. Bollore wants to bolster the production capabilities of Canal+, the pay-TV company in which it holds a controlling interest, making Lionsgate an attractive strategic acquisition target. However, Bollore, the French conglomerate that holds a controlling stake in pay-TV operator Canal+, is not bidding as previously reported, as the company remains focused on integrating All3Media, with sources noting that a bid from Banijay may take time as the company remains focused on this integration.
Banijay's acquisition would add scripted film/TV IP and a real studio/library to its mostly unscripted-format business, creating a more diversified content portfolio. The potential acquisition comes as consolidation accelerates across the media industry, creating opportunities for strategic acquisitions by established players. Mediawan's interest would give the company access to mainstream theatrical franchises including John Wick, Hunger Games, and Twilight, along with library scale layered onto the U.S. production base and network it gained through Chernin, whose group recently produced the smash horror hit Backrooms, which became A24's highest-grossing release to date with over $368 million at the worldwide box office. Lionsgate's catalog is a significant draw beyond the Hunger Games and John Wick series, which includes the Twilight Saga franchise and the Michael Jackson biopic Michael, which took in more than $1 billion at the worldwide box office. The interest reflects a broader push by European media companies to build scale and secure sought-after intellectual property as they compete with global streaming giants.
Lionsgate shares currently trade at roughly 26 times expected pretax profit, creating a premium to comparable studios, according to data from LSEG quoted by Reuters. Two sources told Reuters that earlier potential suitors walked away because of the valuation gap between what buyers were willing to pay and what shareholders expect. The high valuation has complicated acquisition negotiations, though the studio's extensive catalog remains a significant draw beyond its Hunger Games and John Wick series. A separate corporate development adds complexity to the picture: director and shareholder Mark Rachesky this month moved his roughly 10% stake – held via his private equity vehicle – into a newly created fund backed by RenWave Kore, per Reuters. That firm was established in 2024 by Cody Kittle, who previously worked as a portfolio manager at Elliott Investment Management, the activist investor, and is itself backed by Sequoia Heritage. The valuation sought by shareholders could make it difficult for bidders to reach an agreement, with one source adding that previous interested parties walked away because of price expectations.
Shares in Lionsgate jumped as much as 9% in after-hours trading following the report by Reuters on possible takeover interest, as reported by Business Standard. However, sources warn that a deal is not certain, and Lionsgate could still remain independent. Lionsgate and Banijay declined to comment to Reuters, while Bollore did not respond to a request for comment made outside of business hours. In June, Semafor reported that Netflix is interested in purchasing Lionsgate, though it submitted no formal indication of interest, with Netflix later rejecting the report. Earlier reports in 2025 stated that Apollo-backed Legendary Entertainment was weighing a potential acquisition of Lionsgate, with initial discussions reportedly focused on a smaller-scale co-production partnership. On Stocktwits, retail sentiment around LION stock jumped from 'bearish' to 'neutral' over the past 24 hours, while message volume stayed at 'low' levels, with one user voicing hopes for the company getting bought out for over $20 per share, representing a significant premium from Tuesday's closing price of $13.29.
