Legendary submits $3.5 billion takeover offer for Lionsgate

A Bloomberg report says Legendary Entertainment has revived its bid to acquire Lionsgate for $3.5 billion, including debt, prompting a sharp rise in Lionsgate’s stock.

By Felo News Desk · Published Tue, 20 Oct 2026 21:32:55 GMT

Legendary Entertainment has reportedly submitted a takeover offer for Lionsgate valued at $3.5 billion, including $1.9 billion of debt, according to a Bloomberg report cited by both The Hollywood Reporter and Variety. The news sent Lionsgate shares up more than 15% on Tuesday.

What happened

The offer, which values Lionsgate at $3.5 billion, was submitted in the days leading up to Lionsgate’s scheduled earnings release on Nov. 5. Both companies declined to comment on the blind‑sourced report. Shares of Lionsgate rose double‑digits after the story broke.

What the reports add

The Hollywood Reporter highlighted Lionsgate’s 20,000‑title library and active franchises such as John Wick, Hunger Games, Saw, Twilight, La La Land and Dirty Dancing.
Variety noted that other firms, including Banijay (which recently merged with the U.K.’s All3Media) and Mediawan, have expressed interest but have not filed formal bids.
Variety provided financial context: for the June 2026 quarter Lionsgate’s overall revenue jumped 48%, its movie segment posted $105 million in income, and the studio posted a net loss attributable to shareholders of $28.8 million, an improvement from a $94 million loss a year earlier. Cash and equivalents stood at $425.8 million against $1.9 billion of debt.
The report added that a merger could let Legendary self‑distribute its films, expanding beyond its current partnership model.
Legendary, now owned by private‑equity firm Apollo Global Management after a 2024 buyout of Dalian Wanda’s stake, is led by CEO Joshua Grode, who previously hinted to The Hollywood Reporter that the company was positioning itself for “big dealmaking” behind franchises like Dune, Godzilla vs. Kong and Minecraft.

What was said

“The 1987 Patrick Swayze and Jennifer Grey feature was the ‘biggest individual contributor’ revenue‑wise for Lionsgate’s library in its latest quarter,” Feltheimer said in August.

Both outlets reported that representatives for Legendary and Lionsgate declined to comment; no additional quotations were provided.

How it came about

Legendary’s renewed interest follows a year‑long pursuit that began after Lionsgate’s 2025 spinoff from Starz. The company’s CEO Jon Feltheimer has repeatedly emphasized the value of the studio’s extensive library, and recent quarterly performance—bolstered by the Michael Jackson biopic “Michael,” the studio’s biggest box‑office hit to date—has made Lionsgate an attractive target.

Key facts

Legendary Entertainment submitted a takeover offer for Lionsgate valued at $3.5 billion, including $1.9 billion of debt. (variety.com)
Lionsgate shares rose more than 15% after the report of the offer. (variety.com)
Both Legendary and Lionsgate declined to comment on the report. (hollywoodreporter.com)
Other firms that have shown interest in Lionsgate include Banijay and Mediawan. (variety.com)