T - Here's What CEO Jon Feltheimer Thinks About Finding a Merger Deal for Lionsgate
Content studio and media-streaming service provider Lionsgate (NYSE: LGF-A) (NYSE: LGF-B) crushed Wall Street's expectations in last week's fourth-quarter earnings report. Breakeven earnings on $876 million of top-line sales stumped the analyst consensus of a $0.31 loss per share and revenue of $809 million. That report wasn't delivered in a vacuum. The entertainment industry is buzzing with excitement over potential mergers and acquisitions after a splashy content-focused buyout by Amazon.com (NASDAQ: AMZN) and an unexpected spinoff- merger of AT&T 's (NYSE: T) Warner Media division.
Some analysts see Lionsgate as a likely next target for buyout offers. The rock-solid fourth-quarter report seems to support that idea. The combination of buyout speculation and strong business results has driven stock prices sharply higher. Altogether, Lionsgate's shares have gained more than 35% over the last month. Fortunately, Lionsgate CEO Jon Feltheimer took some time in the earnings call to discuss how he feels about potential merger ideas. Let's have a look.
First, Feltheimer said that the Warner and Amazon deals underscored the value of high-quality content and intellectual property. He is not actively looking for a merger-based exit strategy, just focusing on the current business plan. That's how Feltheimer is building long-term value for his shareholders. He feels that Lionsgate can execute its existing growth plans without the financial assistance that a well-heeled buyer would bring.
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Here's What CEO Jon Feltheimer Thinks About Finding a Merger Deal for Lionsgate