Lionsgate Shares Spike 16% as Legendary Entertainment Revives Takeover Talks

3-line summary

• Legendary Entertainment has revived acquisition talks with Lionsgate Studios and submitted a takeover proposal, Bloomberg News reported, citing people familiar with the matter; Legendary had previously considered an acquisition last year, and the two companies have discussed a deal intermittently since then. Legendary, Lionsgate, and Lionsgate parent Apollo Global Management all declined to comment.
• A deal would give Legendary access to Lionsgate's film and TV library-including franchises such as "The Hunger Games" and "John Wick"-and its in-house theatrical distribution network; Lionsgate's annual revenue was cited at roughly $1 billion. The report did not disclose deal terms, valuation, or the reason the earlier talks did not result in an agreement.
• Lionsgate Studios (NYSE: LION) shares jumped more than 16% following the report of revived talks.

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