Lionsgate Studios stock jumped Tuesday on a report that Legendary Entertainment has submitted a takeover bid for Lionsgate.
Lionsgate stock jumped 16.2% to $12.34 just after 3 p.m. Eastern time, snapping a two-day losing streak. It was on pace for its highest close since Aug. 10, when shares hit $12.36.
Legendary, which is owned by Apollo Global Management and company management, and Lionsgate have been in talks since last year, Bloomberg reported, citing people familiar with the matter.
Bloomberg didn't report a price tag.
Neither Lionsgate nor Legendary Entertainment could be immediately reached for comment.
Lionsgate describes itself as one of the world's leading "stand-alone, pure play, publicly traded content companies," with a diversified motion picture and television production and distribution businesses, a portfolio of valuable brands and franchises, a talent management and production division, and a film and television library with more than 20,000 titles.
Lionsgate's film and TV titles include The Hunger Games, John Wick, and the Michael Jackson musical biopic Michael, which has grossed more than $1 billion in global ticket sales since April.
The next installment, The Hunger Games: Sunrise on the Reaping, opens in theaters on Nov. 20.
Legendary is a media company whose productions span film, television and digital, and comics, and it said its productions have grossed more than $20 billion at the global box office. Legendary's pictures include Paramount Pictures' Street Fighter, the videogame-based action movie that topped the weekend box office when it opened with $31 million in North American ticket sales and $51.1 million worldwide. Street Fighter is one of the first releases from Skydance, the company created when Paramount merged with Warner Bros. Discovery earlier this month.
Lionsgate's stock is up 8.5% this month and up nearly 35% this year, on track for its best year on record, according to Dow Jones Market Data.
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