Lionsgate Stock Pulls Back After Netflix Denies Acquisition Interest, Erasing Some of Tuesday's 14% Surge
Complete. Here is the key summaryLionsgate Studios shares retreated approximately 5% in premarket trading after Netflix denied reports of interest in acquiring the studio, erasing part of Tuesday's 14% surge. Although Semafor reported Netflix was among potential buyers, a spokesperson confirmed no acquisition plans exist. Despite the denial, Lionsgate stock remained up 5.55%, suggesting investors remain optimistic about potential M&A activity amidst Netflix's broader market engagement.
Lionsgate Studios Corp. (NYSE:LION) shares are in the spotlight Wednesday after Netflix denied a report that it was interested in acquiring the Hollywood studio.
The Report
Semafor reported Tuesday that Netflix Inc. (NASDAQ:NFLX) is one of several companies that may be interested in buying Lionsgate Studios, citing a person familiar with the matter. No formal indication of interest has been submitted, and spokespeople for both companies declined to comment at the time of the report. A Netflix spokesperson later told TheWrap that the streamer is “not interested” and has no plans to pursue an acquisition. Despite the denial, Lionsgate closed up 14% on Tuesday and fell only around 5% in premarket on Wednesday after Netflix’s denial — suggesting investors aren’t entirely taking the denial at face value.
Netflix’s M&A Appetite
The report came in the context of Netflix’s broader M&A activity — the streamer has been increasingly active in the acquisition market after failing in its bid for Warner Bros. Discovery Inc. (NASDAQ:WBD) and losing Roku Inc. (NASDAQ:ROKU) to Fox Corporation (NASDAQ:FOX) in a $22 billion deal.
Read Also: Stock Market Today: Dow Jones Futures Tumble, S&P 500 Gains As Investors Await FOMC Decision—Amkor, La-Z-Boy In Focus
Lionsgate Shares Retreat
LION Price Action: At the time of publication, Lionsgate shares are trading 5.55% higher at $15.45, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.