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Lionsgate CEO Calls Media M&A Uncertainty "Incredibly Disruptive"

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  Published in Media and Entertainment on Thursday, November 6th 2025 at 20:54 GMT by Deadline.com

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Lionsgate CEO Says Merger Uncertainty “Very Disruptive,” Signals Major Shake‑Up in Hollywood’s Streaming Landscape

In a candid briefing to the media and industry insiders, Lionsgate CEO Andrew Gaty warned that the looming possibility of a merger could be “very disruptive” for the studio’s creative ecosystem. Gaty’s remarks come amid growing speculation that Lionsgate could be on the verge of a multi‑billion‑dollar deal with a streaming giant—most likely Amazon, which recently absorbed MGM and is eyeing a larger content footprint. The CEO’s comments underscore the uncertainty that now hangs over talent, production schedules, and distribution agreements across the company’s global operations.

The Merger in Context

Lionsgate, a private equity‑backed studio known for its mix of blockbuster franchises and niche independent films, has been quietly courting consolidation offers for months. The company’s latest flirtation with Amazon is the latest chapter in a series of high‑profile merger talks that began in earnest after the studio’s acquisition of Starz in 2016. According to Deadline’s earlier coverage, Lionsgate’s parent firm, TPG Capital, has been negotiating with Amazon’s Prime Video team to combine their streaming libraries and production capabilities. A completed merger could place Lionsgate’s Starz brand under the same umbrella as Prime Video, creating a formidable competitor to Disney+, Netflix, and HBO Max.

The potential deal, valued at an estimated $25–$30 billion, would bring together Lionsgate’s rich slate of live‑action movies, television shows, and an extensive library of content that has performed well on Starz and other platforms. Amazon, on the other hand, would gain a significant boost to its original programming pipeline and a stronger foothold in the lucrative U.S. streaming market.

Gaty’s Warning About Disruption

In an interview that followed a late‑night call with the studio’s senior creative talent, Gaty expressed a mixture of optimism and caution. “The uncertainty surrounding any merger is very disruptive,” he told reporters. “It’s a period of high tension for writers, directors, actors, and the production teams who rely on clear timelines to plan their work.”

Gaty highlighted that the ambiguity has already started to ripple through existing projects. Several high‑profile pilots and mid‑budget films have seen their release dates postponed or their production timelines shifted as the studio balances existing contractual obligations with the potential new structure. “We’re not stopping what we’re doing,” Gaty assured. “But the strategic direction of the company is on a different path.”

The CEO’s comments come at a time when Hollywood’s content supply chain is under intense scrutiny. As the “streaming war” escalates, studios are scrambling to secure large libraries of original content to keep audiences subscribed. The merger could allow Lionsgate to expand its reach and distribution channels, but the interim uncertainty has cost the company a degree of operational stability.

Industry Reactions

Industry insiders have mixed feelings about the prospective merger. Some executives applaud the potential for economies of scale and creative cross‑pollination. “If Lionsgate and Amazon combine, we could see a renaissance of content production,” said a senior executive at a competing studio. “The synergy could unlock new revenue streams and improve bargaining power with advertisers.”

Others worry that consolidation could stifle independent voices and crowd out smaller studios. “The more we see these giant deals, the more we see the middle tier being squeezed,” warned a producer who has worked on several independent films in the last decade. “Lionsgate’s creative community could feel the pressure of a larger corporate bureaucracy.”

Gaty’s own words, however, suggest that the studio’s leadership is mindful of maintaining its creative culture. He cited efforts to keep the production pipeline running smoothly, including the commitment to honor existing contracts and to avoid major layoffs during the negotiation period.

What’s Next?

While the merger is still in the exploratory phase, the timing of the decision could be critical. Deadline’s own earlier piece noted that the parties are aiming to finalize the deal by the end of the fourth quarter of 2025. The window for a definitive agreement is narrowing as the studio navigates the regulatory landscape and potential antitrust concerns. A joint filing with the Federal Trade Commission would likely be required, a process that could further delay the finalization.

If the deal goes through, it would create a new streaming powerhouse capable of competing directly with the likes of Disney+ and HBO Max. The new entity could potentially bundle Starz and Prime Video, offering a combined library of over 30,000 titles. In addition, it could leverage Amazon’s existing global logistics network to deliver content more efficiently across regions.

Conversely, if the talks break down, Lionsgate would return to its current path—continuing to focus on content creation and distribution through its Starz brand while maintaining its partnership with Netflix and other streaming platforms. Gaty emphasized that the studio would not abandon its strategic goals, whether or not the merger proceeds.

Conclusion

Andrew Gaty’s candid admission that merger uncertainty is “very disruptive” highlights the delicate balance that studios must maintain during periods of strategic change. For Lionsgate, the potential alliance with Amazon represents both an opportunity to scale its content and a risk to the creative community that has propelled it to its current stature. The industry will be watching closely as the next few months determine whether the merger materializes and, if so, how it reshapes the competitive landscape of Hollywood’s streaming wars.