Lionsgate Studios, the Hollywood company behind blockbuster franchises such as John Wick, The Hunger Games and Twilight, is exploring strategic options including a potential sale after attracting takeover interest from France’s Bolloré Group and television production giant
Banijay, according to a Reuters report citing sources familiar with the matter.
The studio, which has a market value of roughly $3.8 billion, has reportedly engaged an investment bank to evaluate inbound approaches from potential buyers. Sources cautioned that no deal is guaranteed and Lionsgate could ultimately remain independent.
Among the interested parties is Bolloré Group, which is looking to strengthen the content production capabilities of Canal+, the pay-TV company in which it holds a controlling interest. Buying Lionsgate would give access to a huge library of films and TV shows and entertainment franchises known around the world. Banijay Group, which produces television formats including Big Brother and Survivor, has also looked at possibly bidding for the studio. But sources said any move could take time as the company is still focused on integrating All3Media after the two companies recently merged.
The focus on Lionsgate is part of a wider trend of consolidation across the global media and entertainment industry as companies look for bigger content libraries and larger collections of intellectual property to compete with the streaming giants.
Lionsgate owns a catalogue that includes thousands of film and television titles, making it one of the few sizeable independent studios still available.
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Investor interest intensified after reports emerged that longtime Lionsgate shareholder and director Mark Rachesky transferred a roughly 10% stake held through his private equity fund into a newly created investment vehicle backed by RenWave Kore, according to regulatory filings.
Reuters reported that valuation expectations may prove to be a sticking point in any potential negotiations. Some parties previously interested in Lionsgate are believed to have stepped away because of pricing concerns, highlighting the challenges of reaching an agreement despite strong strategic interest.
Following the Reuters report, Lionsgate shares rose as much as 9% in after-hours trading, reflecting investor optimism about the possibility of a takeover.
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