Banijay rules out Lionsgate takeover, focuses on debt reduction

Lionsgate Studios

29/07/2026 06:30

By Leo Marchandon and Jerome Terroy
July 29 (Reuters) - French entertainment group Banijay BNJ.AS on Wednesday ruled out a takeover of Lionsgate Studios LION.N, saying it was focused on integrating recent acquisitions and reducing debt.
The denial follows a Reuters report this month that Banijay had been among parties considering a bid for Lionsgate. The group's debt has risen sharply to more than 5 billion euros after a series of acquisitions.
Chief Executive Francois Riahi dismissed the speculation, telling reporters: "We are not on a shopping spree."
"There is no project in that area," he said, adding that Banijay's financial position would not support a takeover of a company trading at about 20 times earnings.
Riahi said the company was prioritising the integration of recent acquisitions.
The group's balance sheet remained sound and would improve as cash generation increased, Riahi said.
Banijay's net leverage stood at 3.6 times earnings before interest, taxes, depreciation and amortisation (EBITDA) after the All3Media transaction and is expected to fall to 3.4 times by year-end. The company aims to reduce leverage to around two times over the medium term.
Banijay reported first-half revenue of 2.58 billion euros ($2.94 billion), up 16.9% on a reported basis, while adjusted EBITDA rose 18.5% to 502.9 million euros. 
The company's betting and gaming division remained the main growth driver, with revenue rising 10.5% on a pro forma basis, supported by a 22% increase in active players.
Riahi said the FIFA World Cup had generated record customer acquisition and betting activity, although highly predictable results favoured bettors and hurt margins. 
The group reiterated its 2026 targets and said it entered the second half with confidence, expecting continued World Cup-related betting activity, a busier production slate and initial merger synergies to support growth.
($1 = 0.8770 euros)

 (Reporting by Leo Marchandon and Jerome Terroy; Editing by Matt Scuffham)
 ((leo.marchandon@thomsonreuters.com))