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Lionsgate shares jump on takeover speculation involving multiple suitors
The rumors follow Lionsgate posting its best profit in over a decade, with the studio also reportedly advised on strategic alternatives.
Lionsgate Studios shares surged after market rumors said multiple parties are exploring takeover interest in the company, according to Yahoo Finance. The report cited potential interest from France-based Bolloré Group and noted Banijay Group is also considering an offer.
Yahoo Finance said Lionsgate has an investment bank advising it on possible strategic alternatives, though it is not yet clear whether a deal will be reached or whether the company will remain independent.
The story ties the renewed attention to recent performance, saying Lionsgate posted its best profit in over a decade, which could make the business more attractive to strategic buyers.
Yahoo Finance also highlighted where the stock is trading, noting Lionsgate has a market capitalization of $3.96 billion, is 16.9% below its 52-week high of $16.70, and is up 145.7% from its 52-week low of $5.65. The report added that Lionsgate trades at about 1.5 times sales, a relatively low valuation multiple for a content owner with a large library of intellectual property.