Legendary submits takeover offer for Lionsgate as shares surge
Key Takeaway: Legendary Entertainment has submitted a takeover offer for Lionsgate, reviving acquisition talks and sending Lionsgate shares up more than 15 per cent.
The Hollywood Reporter reported that Legendary Entertainment has submitted a takeover offer for Lionsgate, reviving acquisition talks between the two Hollywood studios. The bid, citing Bloomberg, sent Lionsgate shares up more than 15 per cent in afternoon trading on Tuesday.
Both companies declined to comment on the report. Deal terms were not disclosed, according to Variety.
The bid
Legendary, led by chief executive Joshua Grode, is owned by Apollo Global Management, which bought out Dalian Wanda’s stake in 2024 after acquiring a stake in 2022 for $760 million, according to Variety.
Lionsgate is led by chief executive Jon Feltheimer. The studio separated from Starz in 2025 and owns a 20,000-title film and television library spanning the John Wick, Hunger Games, Twilight, La La Land, Dirty Dancing and Saw franchises, as well as 3 Arts Entertainment.
Why now
A merger would give Legendary a theatrical distribution arm, allowing it to self-distribute its films rather than relying on studio partners, while gaining access to Lionsgate’s cash-generating library.
The Hollywood Reporter reported that activist investor Anson Funds, which holds a 1.5 per cent stake, has been pushing Lionsgate toward a sale and met the board to discuss mergers and acquisitions. Other parties including Banijay, Mediawan and France’s Bollore Group expressed interest but submitted no formal offers.
Lionsgate is scheduled to report fiscal 2027 second-quarter results on Nov 5.
Key Story Metrics
| Figure | Reported Status |
|---|---|
| Lionsgate share move | +15%+ (Oct 20, 2026) |
| Lionsgate market cap | $3.6 billion (Variety) |
| Lionsgate library | 20,000 titles (THR) |
| Lionsgate employees | ~1,000 (Last 10-K via THR) |
| Anson Funds stake | 1.5% (THR) |
✓ Verified
• Legendary Entertainment submitted an acquisition offer for Lionsgate, per a Bloomberg report (THR; Variety; TheWrap; Deadline).
• Lionsgate shares jumped more than 15% on Oct 20, 2026; market cap $3.6 billion (Variety).
• Both companies declined to comment (Variety; TheWrap; Deadline).
• Deal terms undisclosed: the Bloomberg report didn’t specify terms (Variety).
• Strategic rationale: theatrical distribution arm plus the cash-generating library (Variety; Deadline; TheWrap).
⚠ Still needs confirmation
• Legendary’s ownership and Apollo stake figures ($760 million in 2022; 2024 buyout of Wanda’s stake) are single-sourced to Variety.
• The Anson Funds 1.5% stake and board meeting are single-sourced to THR.
• The other interested parties (Banijay, Mediawan, Bollore) submitting no formal offers are single-sourced to TheWrap.
Frequently Asked Questions
Who made the offer for Lionsgate?
Legendary Entertainment, according to a Bloomberg report.
How did Lionsgate shares react?
They jumped more than 15% on Oct 20, 2026.
What is Lionsgate worth?
Variety puts its market cap at $3.6 billion.
What is the deal price?
Undisclosed; the Bloomberg report didn’t specify terms.
Why does Legendary want Lionsgate?
A theatrical distribution arm to self-distribute films, plus the cash-generating library.
Editor’s note: Deal terms were not disclosed; the bid was reported via Bloomberg and not confirmed by either company.
