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Lionsgate Stock Jumps on Takeover Speculation

Lionsgate stock jumped nearly 7% to an all-time high closing price on Thursday on speculation that it could be a takeover target.

Shares of the studio rose $2.22 to $34.50 following a report that potential buyers include Amazon, Verizon, and a combined CBS-Viacom. Lionsgate did not immediately respond to a request for comment.

The takeover rumors have emerged amid Wall Street’s expectation for more consolidation among major media and entertainment companies — particularly since Disney’s announcement of a $52.4 billion deal to buy 21st Century Fox assets.

Additionally, speculation is being fueled further by Apple’s reveal on Wednesday that it will bring back the vast majority of the $252 billion in cash that it held abroad under the provisions of the new tax code that President Donald Trump signed into law last month. Other tech giants like Microsoft are expected to follow suit.

Under a CBS-Viacom-Lionsgate combination, the movie businesses would give the new company enough scale to compete

See full article on Variety - Film News