Lionsgate CEO Confirms Strong Library Ownership and Eyes Future Strategic Deals Post-Starz Split

During Lionsgate’s Q1 2026 earnings call, CEO Jon Feltheimer addressed the growing speculation about potential M&A opportunities following the Lionsgate–Starz split. While he didn’t directly confirm rumors of talks with Legendary Entertainment, Feltheimer acknowledged that a strategic transaction in the future is “probably gonna happen,” emphasizing that there are “a lot of ways” it could occur and that the company remains focused on the possibility.

Discussing the rationale for separating Lionsgate and Starz, Feltheimer stated that the move was designed to create optionality for both companies in today’s disruptive media landscape. He noted that Lionsgate is “the only major with scale significantly less than the other majors,” which presents opportunities to leverage earnings power while reducing overhead.

Following initial Legendary–Lionsgate merger rumors, sources indicate talks have cooled, with any potential partnership likely leaning toward a co-production deal rather than a full merger. A stronger share price—currently at $5.91—would also enhance Lionsgate’s position for future deals.

The call also addressed a misconception about Lionsgate’s content library ownership. Feltheimer clarified that the studio owns most of its library, built over 25 years with $20 billion invested in production. He highlighted that 29 of the top 30 titles in the current quarter are owned outright by Lionsgate.

Jim Packer, President of Worldwide TV Distribution, expanded on the point, noting that Lionsgate controls and distributes 20,000 TV episodes globally and manages theatrical and ancillary rights in key territories such as the U.S., Canada, U.K., LATAM, and India. Outside these regions, the company follows a risk mitigation model, licensing rather than selling rights, and often regaining control through reversion clauses.

Packer revealed that 75% of the top 20 franchises are either currently under Lionsgate’s control or will be within the next few years, solidifying its position in both film and television.

Feltheimer concluded firmly: “The bottom line is we own most of our library in perpetuity in both film and television, period.”