Netflix denies Lionsgate deal reports

Netflix has dismissed reports it is looking to buy US studio Lionsgate, after shares surged at the John Wick and Mad Men company.

The US streamer was linked with a deal for Lionsgate in a report by US outlet Semafor, but Netflix took the unusual step of denying the news outright.

“Netflix is not interested and is not pursuing Lionsgate,” the company said, sending shares that had risen almost 15% on the rumours back down.

Lionsgate has frequently seen as an acquisition target amid the fast-consolidating US entertainment industry, following its decision to split from cable operator Starz last May.

The move has been positive for investors, with Lionsgate’s shares up more than 160% over the past 12 months and up 30% in the last month alone.

The company was linked with a potential merger with Dune and Godzilla firm Legendary Entertainment last year, which followed the jon Feltheimer-led company’s formal separation from Starz.

That protracted deal, which had been in the works for years, had been sought to enable Starz and Lionsgate to more easily strike M&A deals relevant to their production and cable/streaming businesses.

Lionsgate employs around 1,400 people globally, with the company focused on production and distribution rather than streaming, following its move to ditch Lionsgate+ internationally four years ago.

The studio’s IP library runs to 20,000 hours and includes major movie franchises including The Hunger Games, John Wick and Twilight.

Netflix, meanwhile, continues to be linked with major M&A moves after deciding against increasing its offer for Warner Bros Discovery.

The streamer did not make a formal move for Roku either, which revealed earlier this week that it had agreed a $22bn deal to be bought by Fox.