Lionsgate Studios Corp. NYSE:LION, the independent film and television producer behind The Hunger Games and John Wick franchises, is exploring a possible sale after holding discussions with France's Bollore Group, Reuters reported Tuesday. The company has reportedly hired an investment bank to review incoming proposals, although Lionsgate declined to comment on the matter. Investors may view the discussions as a potentially significant development for a studio valued at $3.86 billion at Tuesday's close, particularly as consolidation continues to shape the entertainment industry.
The possible sale process follows Lionsgate's separation from Starz, its former streaming and cable channel business, last year. The stock has since gained support from the performance of Michael, the Michael Jackson biographical film, as well as broader speculation about additional media transactions. Bollore Group, the parent company of French television service Canal+, has also been pursuing acquisitions, suggesting the talks may fit within its wider expansion strategy.
The discussions come as Paramount Skydance Corp. NASDAQ:PSKY, a media company, continues its planned acquisition of Warner Bros. Discovery Inc. NASDAQ:WBD, an entertainment company, despite lawsuits from screenwriters and several state attorneys general seeking to stop the deal. Netflix Inc. NASDAQ:NFLX, the streaming company that previously bid for Warner Bros., is also said to remain interested in acquisitions. Investors may see the Lionsgate talks as another sign that film franchises, production businesses, and entertainment assets could remain central to the industry's ongoing consolidation activity.