Legendary Entertainment has renewed its pursuit of Lionsgate Studios, reportedly submitting a US$3.5bn takeover offer that includes the assumption of US$1.9bn in debt, according to Bloomberg. The proposal marks a fresh development in discussions between the two Hollywood studios, which have explored a potential deal since 2025.
The reported offer has renewed speculation over the future ownership of Lionsgate Studios, a major independent film and television producer with an extensive content library and internationally recognised franchises. Lionsgate shares rose sharply following the news on 20 October 2026.
Legendary Entertainment Seeks to Expand Its Studio and Distribution Business
Backed by private equity firm Apollo Global Management and its management, Legendary Entertainment is known for producing major film franchises, including Dune, Godzilla and A Minecraft Movie. The company has also built a television portfolio spanning scripted drama and international productions.
Acquiring Lionsgate Studios would give Legendary access to a broader catalogue of intellectual property, established film and television production operations, and a theatrical distribution business. Such a combination could strengthen Legendary’s position in the increasingly competitive global entertainment market.
Bloomberg previously reported in July 2025 that Legendary Entertainment was exploring a potential acquisition after Lionsgate completed its separation from Starz. The companies have reportedly held intermittent discussions since then, although the latest proposal does not mean a transaction has been agreed.
Representatives for Legendary, Lionsgate and Apollo declined to comment on the reported offer, according to coverage of the development by TheWrap and other industry publications.
Lionsgate’s Content Library Adds to Its Acquisition Appeal
Lionsgate Studios operates across film and television production and distribution, with a library of more than 20,000 film and television titles, according to the company’s investor relations website.
Its film portfolio includes the John Wick, The Hunger Games and Twilight franchises, while its television credits include The Rookie, Ghosts and The Studio. These properties give the studio a substantial catalogue of established intellectual property with potential for continued exploitation across theatrical releases, streaming platforms and international licensing.
For Legendary, the acquisition could provide access to a deeper library of existing titles and additional opportunities to develop franchise extensions, remake projects and new productions. It could also offer greater control over the distribution of its films, reducing reliance on external partners.
Lionsgate Shares Rise Following Takeover Report
Lionsgate Studios shares climbed by more than 15% in trading on 20 October following reports of Legendary Entertainment’s renewed takeover approach. The market reaction reflected investor interest in the possibility of a transaction, although the reported offer remains subject to further developments.
Lionsgate has attracted interest from other media groups in recent years. Mediawan, Banijay and France’s Bolloré Group have previously been linked to potential interest in the studio. Banijay subsequently ruled itself out of the process as it focused on integrating All3Media.
The renewed approach from Legendary Entertainment comes amid broader consolidation across the global film and television industry, as companies seek scale, valuable intellectual property and stronger distribution capabilities in a challenging market.
Whether the latest proposal leads to a formal agreement remains uncertain. For now, Lionsgate’s extensive content library and established franchises continue to make it a significant potential acquisition target in the international entertainment business.
