Bolloré and Banijay explore takeover bids for $3.8B Lionsgate Studios

A sale of Lionsgate Studios would mark the final exit for the last major independent Hollywood mini-major, shifting critical franchises like 'The Hunger Games' and 'John Wick' into European hands. For the streaming market, this signals a shift from platform-building to high-value IP acquisition as global giants look to secure 'must-have' libraries. The potential involvement of Bolloré’s Canal+ or Banijay would solidify a trans-Atlantic production powerhouse capable of rivaling legacy U.S. studios. Watch for whether management can reconcile investor price expectations, which currently sit at a significant premium to industry peers.

The sale exploration arrives following a pivotal year for Lionsgate’s corporate structure. Per Lionsgate corporate filings and ScreenDaily (May 2025), the company officially finalized the legal separation of its studio operations from its Starz premium cable and streaming business on May 7, 2025. This spinoff created a pure-play content entity, Lionsgate Studios Corp., which began trading on the NYSE under the ticker 'LION' while the legacy business was rebranded as Starz Entertainment. This structural move was specifically intended to unlock value for the studio division, which management believed was being undervalued while tied to the linear-focused Starz network.

Strategically, interest from Bolloré Group aligns with its aggressive global push through Canal+. Per Billionaires.Africa (September 2025), Canal+ secured a multi-billion dollar takeover of South African giant MultiChoice, effectively consolidating 90% of the African pay-TV market. Simultaneously, Bolloré has faced domestic resistance; per France 24 and MediaPost (May 2026), over 600 French industry professionals signed an open letter at the Cannes Film Festival protesting Bolloré’s expanding influence over European cinema, leading to a public feud where Canal+ CEO Maxime Saada threatened to cease business with the signatories.

Financially, Lionsgate Studios has struggled with high leverage. Per Seeking Alpha and Bloomberg (January 2026), the studio’s net corporate debt rose to $1.73 billion, representing a leverage ratio of 6.5x OIBDA, more than double the standard threshold for high-leverage companies. Despite these balance sheet pressures, the studio’s library continues to perform, reaching a record $1.05 billion in trailing 12-month revenue as of February 2026, according to recent earnings reports. This high library value explains why European suitors remain interested despite the studio's high trading multiple.