Netflix Shuts Down Lionsgate Acquisition Rumors as M&A Buzz Intensifies

Lionsgate became the center of new Hollywood merger rumors this week after its stock price jumped, but the excitement quickly cooled when Netflix denied that it was interested in buying the studio.

According to Deadline, shares of Lionsgate rose 14% on Tuesday as investors reacted to speculation that the company could become the target of a major acquisition. However, the stock dropped in after-hours trading after Netflix made it clear that a deal was not happening.

A Netflix spokesperson told Deadline, “Netflix is not interested and is not pursuing Lionsgate.”

The rumors came at a time when Hollywood companies are looking for ways to grow, combine businesses, and strengthen their positions in the streaming era. Lionsgate has been viewed as one of the studios that could attract buyers because of its movie library, popular franchises, and smaller size compared to major Hollywood studios.

Lionsgate Studios became a separate company from Starz in May 2025. The move was designed to give both businesses more freedom and make them more attractive to possible investors or buyers. The company has often been described as a possible acquisition target because it owns valuable entertainment properties while operating on a smaller scale.

Since separating from Starz, Lionsgate’s stock has increased significantly. Shares that were around $6 at the time of the split climbed above $16 before falling slightly after Netflix denied the reports.

Even without a Netflix deal, Lionsgate still has several valuable projects that could interest potential buyers. The studio controls major franchises including John Wick and The Hunger Games, while also building interest around new releases.

The company also has several big movies coming soon. Michael, a film about Michael Jackson’s life and career, has become a major box office success, with another movie planned. The Hunger Games: Sunrise on the Reaping is also expected to bring fans back to the popular franchise. In addition, Mel Gibson’s two-part The Resurrection of the Christ project is scheduled for release in 2027 and 2028.

One Wall Street source told Deadline that Lionsgate has been open to a sale if the price is right. “Lionsgate has been a willing seller at the right price. But, in the past, whenever they got close, they were asking more than the market was ready for,” the source said.

The question now is whether Lionsgate’s higher stock value will make a possible deal harder to complete. Some investors have also raised concerns about the company’s ownership rights to certain titles, although Lionsgate has previously rejected those concerns.

Netflix has also faced increased attention over its own possible acquisitions. The streaming company recently walked away from a deal involving Warner Bros. Discovery after deciding not to increase its offer. According to Deadline, Netflix received a $2.8 billion breakup fee after stepping away from the agreement.

The streamer has continued to insist that major acquisitions are not a requirement for its future growth. However, investors have become more sensitive to merger rumors, with Netflix shares often moving after reports about possible deals.

Deadline also reported that Netflix is not interested in buying Imax, another entertainment company currently exploring strategic options. The company has also reportedly not made an offer for Roku, which recently announced plans to sell itself to Fox.

While Netflix is not pursuing Lionsgate, the larger Hollywood industry continues to move toward consolidation. Recent major deals involving companies such as Paramount, Warner Bros. Discovery, Charter, Cox, Nexstar, and Fox show that more changes could still happen as studios and media companies look for new ways to compete.

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