The streaming giant’s next step

: the proposed acquisition of Lions Gate by Netflix

Abstract

Since the beginning of the century to the present day, the way consumers experience entertainment has shifted dramatically. From renting movies on-demand, to going to the movie theatres, the Entertainment industry keeps on dynamically changing over time.Home entertainment services is the latest frontier of that change, in which streaming platforms have gained immense popularity worldwide, such that one of them is instantly associated when such topic is brought up: Netflix.This dissertation studies a possible acquisition within this industry, with Lions Gate as the target and Netflix as the acquirer. Lions Gate, a content production and distribution company, is present both in the traditional channels and the streaming space and so represents a great opportunity for Netflix to acquire valuable content for its library including the rights to well-known franchises.Netflix and Lions Gate have a calculated Enterprise Value of $260.311,57 millions and $5994,21 millions, respectively. The transaction would be expected by the end of 2021, with Netflix following a friendly approach and paying $4043,20 millions (a premium of 30% over market value) in a 100% cash-financed deal, generating $2.107,96 millions in Synergy value.

Date of Award	21 Oct 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	António Borges de Assunção (Supervisor)