Merger talks between Lionsgate and
Legendary have resumed, reviving the possibility of another studio sale. Legendary, the production company behind
films like STREET
FIGHTER and the DUNE
franchise, approached Lionsgate to make a formal offer to acquire the studio,
according to exclusive reporting by Bloomberg.
While talks between the two side have been ongoing
over the last 18 month, this was the first time a formal offer has been made.
Since it first came onto the
scene in 1997, Lionsgate has found its footing in the theatrical landscape as a
mid-major studio with the savvy to acquire popular franchises like JOHN WICK, SAW,
and HUNGER
GAMES. This year, Lionsgate
released its highest grossing title ever with the Michael Jackson musical
biopic MICHAEL,
which became the studio’s first $1 billion film. Meanwhile, Lionsgate has been positioning
itself to be acquired for some time, having completed
its split from Starz network last fall.
Legendary
Entertainment has partnered with major studios for over two decades to finance
major releases. However, Legendary
has become embroiled in legal issues with majors like Warner Bros. over their handling
of Legendary titles, giving them the motivation to take more control of their
own destiny by acquiring a studio with its own distribution capabilities. With Lionsgate having created another hit franchise
in MICHAEL, it could be an opportune time for Lionsgate to sell on the upswing.
