Netflix sets sights on Lionsgate after Warner Bros. pursuit stalls

Here we go again in Hollywood’s never-ending game of studio swaps: Netflix, apparently not quite done window-shopping, is now eyeing up Lionsgate as its next potential purchase. This comes after Netflix kicked the tyres on a possible deal with Warner Bros. Discovery, which fizzled out, and then gave Roku a look, though nothing formal came of that either.

A Queue of Suitors—But No One’s Proposed Yet

First off, let’s be clear: Netflix is just one of several media heavyweights giving Lionsgate a longing stare right now. According to a report from Semafor, absolutely no one in this queue has actually made a formal offer. At the moment, it’s all whispers and well-placed ‘sources familiar with the matter’. In classic corporate speak, everyone is ‘interested’, but no one is reaching for the chequebook just yet.

Netflix’s History of Mergers & Not-Mergers

Netflix tends to describe its approach to mergers and acquisitions as ‘disciplined’, which in plain English means: they’re not buying for the sake of it, and they’re not fond of getting into bidding wars that make Hollywood nervous. That’s precisely how their talks with Warner Bros. played out—no deal, not for want of trying, but Netflix didn’t want to overpay.

Their next target looked to be Roku. Reports say Netflix never actually put a formal bid in for the streaming platform, unlike Fox, who were bold enough to slap $22 billion—yes, billion—on the table in cash and stock. Even that deal would’ve had to hurdle a thicket of antitrust concerns. See, a Netflix-Roku pairing would’ve been extra tricky, since Netflix not only makes its own shows, but it’s also a direct rival with platforms like Disney+ and Peacock, both big names on Roku’s turf.

The Roku board, for what it’s worth, were reportedly laser-focused on getting as much value as possible. There’s a point here about Fox offering around $160 per share—and Netflix, by all accounts, didn’t get anywhere close to that mark.

Where Does This Leave the Lionsgate Saga?

At the time of writing, there isn’t much else to go on. Here’s what’s definite:

• Netflix has interest in buying Lionsgate but so do other media companies
• Nobody’s made a formal bid, including Netflix
• If anything does progress, there’ll be the usual pile of legal exercises to get through before any dotted lines get signed

Reps from Roku and Lionsgate aren’t saying a word, which is hardly surprising given how these deals usually play out.

And that’s where things stand: lots of speculation, plenty of positioning, and not a single handshake agreement in sight.