European Giants Mediawan and Banijay Target Lionsgate in $3.8B Bid
European production companies Banijay and Mediawan are exploring potential acquisitions of Lionsgate Studios, which has a market valuation of approximately $3.8 billion. The proposed consolidation aims to combine Lionsgate's major scripted franchises with the production houses' existing unscripted and independent content catalogs.
Key Takeaways
- Lionsgate Studios is currently valued at approximately $3.8 billion and trades at 26 times expected pretax profit.
- Mediawan is seeking to expand its U.S. footprint following its acquisition of North Road and production success with the film Backrooms.
- Banijay is considering a bid despite its current ongoing integration of recently merged All3Media.
- Lionsgate’s library includes the John Wick, Hunger Games, and Twilight franchises, alongside the Michael Jackson biopic Michael.
- Shareholder Mark Rachesky moved his 10% stake into a fund backed by RenWave Kore, led by former Elliott Investment manager Cody Kittle.
Why It Matters
A successful acquisition would signify a major consolidation phase where European content powerhouses aggressively move into the U.S. studio system to secure high-value scripted IP. For Banijay, the move would balance its unscripted dominance with cinematic franchises, while for Mediawan, it offers immediate scale to compete with Hollywood majors. The valuation premium of 26x pretax profit suggests that while the library is attractive, price discovery remains the primary friction point. Watch for any official guidance from the newly involved RenWave Kore regarding Lionsgate's capital structure or board composition, which could signal a push for a sale.
Additional Context
The interest from Mediawan and Banijay follows a period of significant consolidation within the European television sector. Per Reuters in May 2026, Mediawan's parent company has been focused on building an 'independent studio' alternative to Netflix and Disney, bolstered by the 2024 full integration of Plan B Entertainment. Meanwhile, Banijay's acquisition of All3Media in early 2026 for approximately $1.45 billion has already created a dominant force in the global unscripted market, controlling hits like The Traitors and Squid Game: The Challenge. Moving into the U.S. studio space represents a pivot from production services toward full ownership of major global theatrical intellectual property. Financial analysts noted in June 2026 via Bloomberg that mid-sized studios like Lionsgate have become prime targets as streaming platforms shift toward licensing proven hits rather than funding original risky ventures. Currently, the studio landscape is reacting to the fallout of the 2025 Paramount-Skydance merger, which set new benchmarks for library valuations and domestic distribution capabilities. According to LSEG data from July 2026, the global demand for library 'comfort' viewing—long-running series and established film franchises—has increased the enterprise value of legacy catalogs relative to new production slates. This rising value is particularly relevant for Lionsgate, whose John Wick franchise has demonstrated rare multi-platform growth across film, television, and gaming.
Read full article at variety.com
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