Legendary Is Mulling Acquisition of Lionsgate Studios

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Jul 14

Two of Hollywood’s biggest genre powerhouses may soon merge, as Legendary eyes acquisition of Lionsgate Studios following its Starz split.

In a potentially seismic shift in the entertainment industry, Legendary Entertainment is reportedly exploring a deal to acquire Lionsgate Studios, according to sources confirmed by Variety. The potential acquisition follows Lionsgate’s strategic separation from Starz earlier this year and could reshape the future of mid-major studio competition in Hollywood.

While neither party has publicly commented, Bloomberg reports that Legendary initiated contact with Lionsgate after the studio’s Starz spinoff became official in May. The move, if completed, would consolidate two of the most bankable portfolios in contemporary filmmaking. Legendary brings to the table its “monster-verse” series — which includes box office staples like Godzilla x Kong — along with the Dune franchise and this year’s surprise hit Minecraft: The Movie. On the other hand, Lionsgate commands properties like John Wick, The Hunger Games, and a massive 20,000-title content library.

As of Friday’s market close, Lionsgate Studios held a market cap of approximately $2 billion. The mere rumor of a deal spiked Lionsgate’s stock 20%, illustrating investor confidence in a potential merger between the two legacy houses.

Lionsgate Studios was officially separated from the Starz brand on May 7, forming an independent, publicly traded entity after merging with Screaming Eagle Acquisition Corp., a SPAC. Although Lions Gate Entertainment Corp. still holds 87.3% of shares, the standalone structure makes the company more accessible for acquisition.

Legendary, for its part, has recently undergone its own transformations. In 2023, the company bought out the remaining stake from China’s Dalian Wanda Group, placing control firmly in the hands of Legendary and Apollo Global Management, which had invested $760 million in 2022. Apollo’s involvement brings a layer of financial muscle that could accelerate the acquisition of Lionsgate and bolster Legendary’s bid to compete with streamers and studio giants alike.

If this deal goes through, it could mark one of the most consequential mergers in recent Hollywood memory, not just for its implications on content consolidation but also for the creative muscle it would unify. From the stylish brutality of John Wick to the mythic scale of Dune, a Legendary-Lionsgate alliance would create a formidable powerhouse with both box office clout and prestige IP.

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Here’s what we know: Legendary made the first move shortly after Lionsgate’s Starz separation. No deal terms have been disclosed, and no official statements have been released. However, if negotiations proceed, the unification of these two prolific players would create an unrivaled content engine — one capable of taking on Hollywood’s streaming-first future while preserving the allure of theatrical spectacle.