Overview

• Legendary and Lionsgate are holding preliminary talks on joint feature productions to test strategic alignment ahead of any formal takeover.
• Moelis & Company is advising Legendary on early acquisition discussions with Lionsgate.
• Lionsgate’s market capitalization stands at about $2 billion after its Starz spin-off and SPAC merger, and its stock jumped 20% on initial takeover reports.
• Legendary’s Apollo-backed buyout of Dalian Wanda’s stake last year removed foreign-ownership hurdles and bolstered its capacity for billion-dollar M&A.
• A potential deal would combine Legendary’s franchises like Dune and the MonsterVerse with Lionsgate’s John Wick and Hunger Games libraries.