Image Credit: Alamy/Netflix
Rumors of Netflix buying a major Hollywood studio are nothing new, but things are heating up. A new report suggests that the streaming giant is seriously considering Lionsgate to strengthen its library, signaling a major change in the way the company sees its future.
According to an exclusive report of Rohan Goswami in SemaphoreNetflix is officially moving into the M&A arena and not holding back from its previous efforts earlier this year. Of course, we’re referring to its bid for Warner Bros. Discovery, which they ultimately lost to Paramount, and most recently, reportedly lost to Fox in a massive $22 billion pursuit of Roku (which was initially founded and housed within Netflix).
Lionsgate Studios Corp. stock is up nearly 8% according to the report.
From builders to buyers
For the longest time, Netflix’s mantra was simple: We are creators, not buyers. He preferred to spend his billions creating original IP from scratch rather than buying legacy media companies. But as Semaphore reports, Netflix’s pursuit of Warner Bros. Discovery highlights a strong hunger to go bigger.
Ted Sarandos also acknowledged on an earnings call that he “really built our M&A strength” during the WBD search. Although they remained staunchly disciplined about not overpaying – reportedly this is why Roku was ultimately too rich for their blood – the change in mentality is evident. Netflix is looking to buy, and Lionsgate Studios is currently one of the top properties in its crosshairs.
In early 2021, we explored why the Lionsgate acquisition made perfect sense as legacy studios like Disney and Warner Bros. began to scale back their licensed films. As we briefly reported at the time, absorbing Lionsgate would give Netflix a substantial, ready-made movie library with heavy-hitting IP, long-term TV licenses. Mad Man, weeds, nashville, nurse jackieamong countless others, but the acquisition would not be so large as to potentially diminish momentum within Netflix or cause too much internal disruption, which was one of the prevalent fears heard from sources regarding the Warner Bros. acquisition.
Later that year, The Entertainment Strategy Guy (ESG) joined us to assess the pros and cons of 9 different Netflix acquisition targets. Rather than extracting exact quotes from those archival pieces, the main finding from ESG’s analysis remains incredibly relevant today: Compared to the hefty price tags of Sony Pictures or ViacomCBS (Paramount as it is now known), Lionsgate was identified as the most valuable film acquisition “pound for pound” on board. The only major downside we assessed at the time was the headache of figuring out what to do with Starz’s linear cable network – but given that Starz has since spun offThat issue is less impactful.
This acquisition will also give Netflix entry into global theatrical distribution Partly in more experiences, But undoubtedly, the big attraction is the library.
Netflix and Lionsgate current relationship
Netflix and Lionsgate are hardly strangers. The two companies have worked together on major co-productions such as the Brad Pitt film war machineAnd Lionsgate Television is the studio behind massive Netflix hits 15-20. Netflix also regularly licenses films and series from its back catalog and has even chosen to release some of its films in the first window after their theatrical debuts.
Image Credit: Netflix
Recently the relationship has deepened. Lionsgate is propping up series left and right, including Netflix exclusive licensing hunting wives (which was later renewed as a Netflix Original for Season 2) and the highly anticipated ensemble drama waveWhich premiered in December 2025.
If Netflix were to fully acquire Lionsgate, it would inherit an absolute goldmine of properties and recent blockbuster IP. We’re talking about taking ownership of a huge franchise like hunger games, john wick, saw, twilight saga (Netflix is already working with an animated series), and now you see Me. That’s not to mention the big win Lionsgate recently had in theaters michael.
Do you think Lionsgate is a good acquisition target for Netflix in 2026? Let us know in the comments.
