Legendary Pictures, the film studio (partially) behind Pacific Rim, Dune, and Godzilla's MonsterVerse, is reportedly looking to acquire Lionsgate, which is primarily known for John Wick, The Hunger Games, Saw, and Twilight.
Legendary Pictures has built its reputation by serving mainly as a co-financier and co-producer on major studio films, especially large-scale “tentpole” blockbusters. This partnership-driven approach has been the foundation of their business model since the company was founded.
Lionsgate recently split from Starz, and now that it's flying solo, the studio is said to be primed for merger & acquisition.
Bloomberg reports that Legendary and Lionsgate may first work together as co-financiers on a few pics before deciding on whether to go through with a merger. On the news of a potential acquisition, Lionsgate shares rose over 20% at the close of business on Friday.
Industry experts see the merger as a smart move for both companies. Legendary brings strong financial strategy and production experience, while Lionsgate offers a massive, content-rich library of more than 20,000 titles.
Together, they form a potential new powerhouse, one that combines business savvy with creative assets, resulting in a partnership that could potentially reignite the landscape for mid-budget filmmaking.
Interestingly, Lionsgate has historically been on the acquisition side of deals like this. Over the past few decades, it has absorbed several other companies, including Trimark Pictures in 2000, Artisan Entertainment in 2003, and most recently, eOne in 2023. This new deal marks a significant shift in its role within the industry.
By acquiring Lionsgate, Legendary gains access to several well-known properties and IPs.
These include the cult-favorite Leprechaun horror series, A Kid in King Arthur’s Court, Eve’s Bayou, Belly, and the iconic Blair Witch Project. They also acquire access to popular TV hits like Yellowjackets, and even franchise potential in brands like the Monopoly board game.
However, the merger isn’t without complications. A major challenge is that Lionsgate only holds domestic rights to many of its most valuable franchises.
To survive during financially difficult years, the company sold off the international distribution rights to most of its top-tier properties. Those rights are tied up for decades, meaning Legendary won’t be able to fully monetize some of these major IPs on a global scale anytime soon.
Still, analysts seem to be in consensus that the merger makes sense for both parties. If it comes to pass, don't be surprised if we start hearing rumors about some wacky crossovers.