Netflix denies it’s sniffing around Lionsgate as a potential acquisition target, but shares go mad anyway. More here. In the week where Paramount’s plan to buy Warner Bros has effortlessly stepped over regulatory approval in America, speculation has turned to streaming giant Netflix. Netflix, after all, originally looked like it was in pole position to ... Netflix | Streamer denies that it’s now looking to buy Lionsgate instead
Netflix denies it’s sniffing around Lionsgate as a potential acquisition target, but shares go mad anyway. More here.
In the week where Paramount’s plan to buy Warner Bros has effortlessly stepped over regulatory approval in America, speculation has turned to streaming giant Netflix. Netflix, after all, originally looked like it was in pole position to acquire Warner Bros until it ended up priced out of the deal. Now, it’s looking a teeny bit exposed at the top table of multi-zillion dollar entertainment corporations.
Hence, the name Lionsgate has dropped into the conversation.
Lionsgate has enjoyed a bit of a year at the box office, courtesy of the, well, let’s say ‘heavily contentious’ Michael, to which it now plans a sequel. Speculation about it being a takeover target has come and go over time, and overnight, it sprung up again. Netflix? Lionsgate? On paper, that sounds logical.
On paper though is where it’s likely to stay.
Notwithstanding the fact that Lionsgate shares started rocketing off the back of the story breaking, at this stage there doesn’t appear to be any substance to the gossip. Netflix, in fact, moved very quickly to stamp this one out. A rep quickly told the trade press that “Netflix is not interested and is not pursuing Lionsgate.”
Lionsgate – and Sony – are the two studios of note at the moment that don’t have a streaming service of their own (not for the want of trying, but Lionsgate+ barely counts). It’s turned out not to be too bad a decision either. Without the need to feed a streaming service, it’s not got the same pressures to find subscriber numbers and sustain then. Instead, it’s playing the old-fashioned game of roulette every time it releases a film instead. Although it’s got another The Hunger Games film incoming, so its odds might be in its favour. I apologise.
Recently demerged from Starz, Lionsgate may well find itself acquired in the future, and is likely to fetch a handsome price if and when that happens. It’d be lovely though if a studio could remain independent, not pursue ‘efficiencies’ and not worry about having to be richer than everyone else.
More on the non-acquistion here…
