Lionsgate shares rise after report of Netflix interest

Shares of Lionsgate surged on Tuesday following a report that Netflix is among several media companies interested in acquiring the Hollywood studio, a development that underscores the ongoing consolidation within the entertainment industry. The stock closed up approximately 14%, though a spokesperson for Netflix later disputed the report, stating the company is not interested and has no plans to pursue such an acquisition.

According to a report by Semafor, Netflix is one of a number of potential suitors for Lionsgate, though no formal indication of interest has been submitted by any party. Representatives for Lionsgate declined to comment on the speculation. The market reaction highlights Lionsgate's status as a long-perceived acquisition target, with its shares having risen 77% since January. The studio, with a market capitalization of roughly $4.7 billion, owns valuable franchises including John Wick, The Hunger Games, Saw, and the Power television series, along with the Starz network.

This speculation follows a series of high-profile merger and acquisition pursuits by Netflix that ultimately did not materialize. Earlier this year, Netflix withdrew an $83 billion bid for...