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These 4 Tech, Media Giants Are In Talks To Buy Lionsgate

Amazon (AMZN), Verizon Communications (VZ) and a possibly reunited CBS (CBS)-Viacom (VIAB) are all in active talks to acquire Lionsgate (LGFA), according to a Deadline report Thursday.

X The news comes amid a flurry of studio M&A news, most recently that Shari Redstone, whose National Amusements controls both CBS and Viacom, is reportedly looking to merge the two companies, which split over a decade ago.

The Wall Street Journal said late Wednesday that she is moving to replace members of CBS' board of directors. While CBS chief Les Moonves has not been keen on the possibility of a CBS-Viacom reunion in recent years, Bloomberg is reporting that he is now open to the idea.

The recent, swift changes to the media landscape may be changing minds at the studio level, as digital players such as Netflix (NFLX) and Amazon plow deeper into Hollywood, and Walt Disney (DIS) takes possession of 21st Century Fox's (FOXA) TV and film assets.

Lionsgate's class A shares shot up 6.9% to 34.50 in the stock market today, hitting the highest level in more than two years. Amazon shed 0.1%, Verizon dipped 0.3%, CBS gained 1.9%, Viacom jumped 6.2% and Disney slipped 1.4%.


IBD'S TAKE: If you want to understand the state of the market, pay attention to the major averages and leading stocks. Read IBD's Stock Market Today columns throughout the market day, and the end-of-day The Big Picture (take a free trial) for timely market analysis and highlighted growth stocks breaking out of proper bases.


Lionsgate captured 8% of the domestic box office — a gross of $885 million — in 2017, putting it in sixth place behind the other major studios, according to Box Office Mojo.

Disney had the lion's share of box office revenue last year, at 21.8%, and will now almost certainly widen its lead with No. 4 Fox under its umbrella.

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