Why Is Lionsgate Studios Stock Surging on Wednesday?
Lionsgate Studios Corp. (NYSE:LION) stock is trading higher on Wednesday following reports that the entertainment company is exploring a sale. The studio behind the “Hunger Games” and “John Wick” franchises attracted takeover interest from France’s Bollore Group and television production company Banijay Group, according to a Tuesday report by Reuters citing three people familiar with the matter.
The company, which carries a market value of approximately $3.8 billion, is working alongside an investment bank to evaluate incoming approaches. Reuters sources stated that discussions remain confidential, a deal is not certain, and Lionsgate could still remain independent.
Lionsgate Studios did not immediately respond to Benzinga’s request for comment.
Analyst Targets and Ratings
Wall Street remains bullish on the stock, with a consensus Buy rating and an average price target of $13.05. Recent analyst actions include B. Riley Securities initiating coverage with a Neutral rating and a $17 forecast, while Baird and Benchmark raised their price forecast to $20 and $17, respectively.
Context of M&A Activity
The takeover interest follows an environment of heightened media consolidation. On June 17, Lionsgate shares faced a minor pullback after Netflix Inc. (NASDAQ:NFLX) denied acquisition rumors. A Netflix spokesperson told TheWrap that the streamer is "not interested" and has no plans to pursue an acquisition, following a Semafor report suggesting potential interest.
Netflix remains active in the broader acquisition market after failing to secure Warner Bros. Discovery Inc. and losing Roku Inc. to Fox Corporation in a $22 billion deal.
Critical Levels To Watch for LION Stock
From a trend perspective, the bigger picture still favors bulls: LION is up 115.94% over the past 12 months and remains well above its longer-term trend gauges, trading 19.6% above the 100-day SMA ($12.05) and 45.4% above the 200-day SMA ($9.90). The golden cross that formed in December 2025 (50-day SMA above the 200-day SMA) reinforces that the primary trend has been pointed higher.
In the near term, the stock is working through a digestion phase: it’s trading 2.5% below the 20-day SMA ($14.77) but slightly above the 20-day EMA ($14.23). It’s also trading 3.7% above the 50-day SMA ($13.89), suggesting pullbacks have stayed controlled rather than turning into a deeper breakdown.
Momentum is best read through RSI, which sits at 52.02—neutral and consistent with a stock that’s pausing rather than accelerating.
- Key Resistance: $16.50
- Key Support: $13
LION Stock Price Activity: Lionsgate Studios shares were trading at $14.29 at the time of publication on Wednesday, according to Benzinga Pro data.
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