Netflix Shuts Down Lionsgate Acquisition Buzz

Netflix has officially denied being interested in acquiring Lionsgate, effectively shutting down merger rumors that had previously sent Lionsgate's shares soaring. The standalone studio, which separated from Starz in May 2025, saw its stock jump 14% on Tuesday amid speculation, before falling in after-hours trading following Netflix's blunt repudiation. "Netflix is not interested and is not pursuing Lionsgate," a spokesperson confirmed.

Lionsgate CEO Jon Feltheimer has previously acknowledged the studio's need for greater scale. However, the company holds significant intellectual property, including the popular "John Wick" franchise, and has a robust pipeline of film and television content. Upcoming projects include "The Hunger Games: Sunrise On the Reaping" this fall and Mel Gibson's two-part "The Resurrection Of The Christ" set for 2027 and 2028. Despite its performance, some analysts note that Lionsgate has historically sought prices higher than the market was prepared to pay.

This situation occurs as the entertainment industry experiences a wave of consolidation. Other companies like IMAX are also reportedly exploring strategic options, with Netflix reportedly showing interest in Sony Pictures, though Sony has indicated its intent to keep that division. Netflix itself has been cautious with M&A, having previously walked away from a deal with Warner Bros. and receiving a $2.8 billion breakup fee.