Netflix Sets Its Sights on Lionsgate After a Year of High-Stakes Hollywood Dealmaking

Netflix has spent the better part of the past year reshaping its relationship with Hollywood, and the company appears nowhere near done. The streaming giant that once prided itself on building its empire from scratch has transformed into one of the most aggressive dealmakers in the entertainment industry, pursuing major studio assets with the kind of determination that would have seemed unthinkable just a few years ago.

That transformation was accelerated by a bruising and very public bidding war. Netflix failed in its bid to acquire Warner Bros. Discovery, and then bowed out of its pursuit of Roku, according to people involved in the sale process. Both losses stung, particularly the Warner Bros. Discovery defeat, which came after an extended campaign that Netflix fought hard to win. Netflix ultimately lost Warner Bros. Discovery to Paramount, and then most recently reportedly lost out to Fox in a $22 billion pursuit of Roku.

But rather than retreating, Netflix appears to be doubling down. According to an exclusive report from Semafor, Netflix is increasingly showing up in the marketplace for giant deals and is one of a number of media companies interested in buying Lionsgate Studios, although no formal indication of interest has been submitted. The report immediately sent shockwaves through financial markets and entertainment circles alike.

The response from Wall Street was swift and telling. Lionsgate’s stock rose by more than 9% on the day of the report, while Netflix’s stock fell by 3.57%, a split reaction that reflects classic market logic around acquisition speculation. Target companies rise on the prospect of a premium buyout, while potential acquirers see pressure as investors weigh the cost and complexity of a major deal.

Representatives from Netflix, Lionsgate, and Roku all declined to provide comment on the speculation, which is standard protocol when discussions are exploratory and no formal process has been launched. The silence itself is notable, offering neither confirmation nor denial that could calm or further stoke the speculation.

The appeal of a Lionsgate acquisition is easy to understand when you look at what the company owns. Lionsgate’s library includes the ‘John Wick’ and ‘Hunger Games’ franchises, along with the Starz premium cable network, assets that would carry real value for any buyer looking to bulk up on content. These are not aging properties gathering dust. ‘John Wick’ remains one of the most commercially potent action franchises in Hollywood, and ‘The Hunger Games’ has demonstrated long-term audience loyalty across multiple installments and a prequel film.

Semafor noted that Netflix is among several interested parties, meaning Lionsgate could attract a competitive bidding process if things progress. That competitive dynamic is important context. Netflix may be serious about Lionsgate, but it is also operating in a landscape where other major players are circling the same prize.

The deeper story here is about a fundamental change in how Netflix thinks about growth. For the longest time, Netflix’s mantra was simple, preferring to spend its billions creating original IP from scratch rather than buying legacy media companies. But its pursuit of Warner Bros. Discovery exposed a ravenous appetite to get bigger, and Ted Sarandos admitted on an earnings call that they had really built their M&A muscle during the WBD pursuit.

Netflix has described its approach to M&A as disciplined, and the company’s willingness to walk away from both Warner Bros. Discovery and Roku when the price did not suit them supports that characterization. The Lionsgate situation may ultimately follow the same pattern if valuations climb beyond what the streamer considers acceptable.

Netflix is scheduled to announce its Q2 2026 earnings on July 16, which will presumably provide the next significant opportunity for executives to directly address merger and acquisition inquiries. That earnings call now carries even greater weight, with investors and industry watchers eager to hear just how serious Netflix’s appetite for a studio deal really is.

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