Story
Lionsgate Studios Explores Sale Amid Takeover Interest from Bollore, Banijay
Summary
The film and television studio behind the "Hunger Games" franchise is evaluating inbound approaches from European media firms, sources say, as industry consolidation accelerates. A potential deal faces hurdles, including the company's high valuation.
Lionsgate Studios, the entertainment company behind major franchises like "John Wick" and "The Hunger Games," is exploring a sale after attracting takeover interest from European media giants Bollore Group and Banijay Group. According to three people familiar with the matter, the move signals accelerating consolidation across the global media landscape as firms compete for valuable content libraries.
European Suitors Circle
The company, which has a market capitalization of approximately $3.8 billion, is reportedly working with an investment bank to evaluate inbound approaches. The sources, who requested anonymity because the discussions are private, cautioned that a deal is not certain and Lionsgate could ultimately remain independent.
Potential bidders include:
- Bollore Group: The French conglomerate is reportedly looking to expand the production capabilities of Canal+, the pay-TV company in which it holds a controlling stake.
- Banijay Group: The television production powerhouse, known for hits like "Big Brother" and "Survivor," has also considered a bid. However, sources noted a formal offer may take time as Banijay focuses on integrating its recent merger with All3Media.
AdValuation Poses Potential Hurdle
The interest in Lionsgate highlights a strategic push by European media companies to acquire intellectual property and scale up to better compete with global streaming services. Lionsgate's extensive library includes valuable franchises such as "The Twilight Saga" and the recent blockbuster biopic "Michael."
Despite the strategic rationale, any potential deal could face significant valuation challenges. Two sources indicated that previous interested parties have walked away due to high price expectations from shareholders. According to LSEG data, Lionsgate shares trade at a premium to peers, valued at 26 times expected pretax profit. The company's official representatives, along with those from Banijay, declined to comment, while Bollore did not respond to a request for comment.
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