Legendary Entertainment is in talks to acquire Lionsgate Studios, following the latter’s recent separation from Starz. If the deal goes through, it would unite two major players in the entertainment industry: Legendary, known recently for its ‘Dune’ franchise and the ‘MonsterVerse’ series, and Lionsgate, which boasts blockbuster franchises like ‘John Wick’ and ‘The Hunger Games.’

Legendary reportedly approached Lionsgate Studios about a potential deal shortly after the company officially split from Starz in May.

Representatives from both Legendary and Lionsgate declined to comment on the potential acquisition. Bloomberg was the first to report the news.

As of the close of trading on Friday, Lionsgate Studios had a market capitalization of approximately $2 billion. Its stock surged 20% following Bloomberg’s initial report.

Lionsgate Studios formally separated from Starz on May 7, creating a standalone entity focused on film and TV production and distribution. The studio, which includes a library of more than 20,000 titles, merged with the special-purpose acquisition company Screaming Eagle Acquisition Corp. last year. As a result, Lionsgate Studios became publicly traded, with Lions Gate Entertainment Corp. retaining 87.3% ownership of the company.

Legendary, meanwhile, completed a buyout of Dalian Wanda Group’s stake in the company last year. That move left Legendary under the control of itself and Apollo Global Management, the private-equity firm that invested $760 million into the company in 2022.

Legendary Pictures’ recent projects include 2025’s anticipated ‘Minecraft’ movie. Its broader catalog features hits like ‘The Hangover’ and ‘The Dark Knight.’

According to the company, its films have grossed over $20 billion globally.

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