Legendary Entertainment Makes $3.5 Billion Offer to Buy Lionsgate

Legendary Entertainment is making another play for Lionsgate, and this time there's a $3.5 billion offer on the table. The studio behind Dune and A Minecraft Movie has reportedly revived its efforts to acquire Lionsgate, potentially bringing some of Hollywood's biggest movie franchises under one roof.

According to Bloomberg, Legendary has submitted a takeover offer valuing Lionsgate at $3.5 billion, including $1.9 billion in debt. The news sent Lionsgate shares climbing more than 15% on Tuesday, suggesting investors are pretty excited about the possibility of a deal.

Legendary has been interested in Lionsgate for a while. The company explored a potential partnership in 2025, shortly after Lionsgate separated from Starz in May of that year. That split turned Lionsgate Studios into an independently traded company, making it a more attractive acquisition target.

There's plenty for Legendary to gain from buying Lionsgate. Along with its film and television production and distribution operations, Lionsgate controls a library of more than 20,000 titles and major franchises including John Wick, The Hunger Games, and Saw. So combining the two companies would create a pretty impressive collection of blockbuster properties.

The acquisition could also give Legendary the ability to distribute its own movies instead of relying on other studios to get them into theaters. That's a significant advantage for a company looking to expand its position in Hollywood.

Legendary isn't the only company interested in Lionsgate. Banijay and Mediawan have also expressed interest in acquiring the studio, although neither has submitted a formal takeover offer. Banijay recently completed its merger with the U.K.'s All3Media, with the combined business now operating as Banijay Entertainment.

Financially, Lionsgate has been showing some encouraging improvements. For the quarter ending in June 2026, the company reported a 48% increase in overall revenue, while its film division generated $105 million in income.

Much of that success came from Michael, the Michael Jackson biopic that became Lionsgate's highest-grossing movie to date and the first biographical film to cross $1 billion at the worldwide box office.

The company's quarterly net loss attributable to shareholders also narrowed considerably, dropping from $94 million a year earlier to $28.8 million. However, Lionsgate's television business experienced declines in both revenue and profit.

As of June 30, Lionsgate had $425.8 million in cash and equivalents, alongside $1.9 billion in total debt. Legendary has also made some major financial moves of its own. In 2024, the company bought out Chinese conglomerate Dalian Wanda Group's ownership stake, leaving Legendary and private equity firm Apollo Global Management in control. Apollo previously invested $760 million in Legendary in 2022.

For Legendary, acquiring Lionsgate would be a major step toward becoming a more independent Hollywood powerhouse, with its own distribution operation and a massive library of established entertainment properties.

Of course, submitting an offer doesn't guarantee a deal. Lionsgate has attracted potential buyers before, and there's still no confirmation that the two companies will reach an agreement.

It'll be interesting to see whether Legendary can make this acquisition happen. It would certainly help the studio become a major force in Hollywood.