Overview

• Legendary has initiated early-stage talks to acquire Lionsgate Studios, sources say.
• The two companies are discussing feature co-productions as a preliminary litmus test for a potential merger.
• Spokespeople for both Legendary and Lionsgate have declined to comment on the status of negotiations.
• Lionsgate’s stock surged about 20% to reflect a market capitalization near $2 billion after initial reports.
• Backed by Apollo Global Management and free of foreign-ownership limits after buying out Wanda’s stake, Legendary is positioned for large-scale M&A.