Lions Gate topping as vice chairman says ready for consolidation

|By:, SA News Editor

Shares in Lions Gate Entertainment (LGF.A +4.1%, LGF.B +3.3%) are up and hitting their highest point since share reclassification after its vice chairman indicated the studio is "very interested in the consolidation space."

Michael Burns says the company is talking to many people about merger prospects; "I could never say specifically," but likely partners include Verizon (NYSE:VZ), Comcast (NASDAQ:CMCSA), and (NASDAQ:AMZN), CNBC says.

Consolidation in the media/telecom space, including big deals set between AT&T and Time Warner and between Disney and Fox, have raised the stakes for the remaining large-size independents, and Lions Gate is firmly in that space.

Burns says he "wouldn't pick a potential favorite partner" but highlighted all the business Lions Gate is doing with Amazon, including film releases The Big Sick and Manchester by the Sea: "We think there's more and more to do with them."

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