Legendary Entertainment Explores Possible Sale
Legendary Entertainment, the company behind “Godzilla vs. Kong” and the upcoming “Dune,” is exploring a possible sale or potential merger with a partner, according to two individuals with knowledge of the situation.
Legendary is the latest company to join Hollywood’s mergers and acquisitions frenzy with A24, Imagine, Hello Sunshine and SpringHill having recently jumped in.
The Wanda Group previously acquired Legendary from founder Thomas Tull in 2016 for $3.5 billion.
The potential sale prices for these companies — or at least the prices floated in the media — have stunned many in Hollywood with billion-dollar valuations and multiple bidders in the mix. A24 has reportedly been in discussions with potential buyers seeking to own the rights to art-house hits like “Uncut Gems” and “Minari” for $2.5 billion to $3 billion. Hello Sunshine is in the marketplace seeking to bag $1 billion; while a Bloomberg report said Nike and others were looking at James’ SpringHill at a $750 million valuation. Imagine Entertainment, founded by Brian Grazer and Ron Howard, is also in discussions with buyers, an individual with knowledge recently told TheWrap.
“Streaming has changed the economic model,” said one entertainment executive, who called this moment a once-in-a-lifetime opportunity for those looking to cash out. “If someone comes in with the right offer, you do what you need to do. You align or get bought by something bigger.”
Another prominent Hollywood insider agreed, adding that there has never been more demand for production and that the stock market is higher than ever.
“You’ve got a confluence of a lot of singular events which are causing all asset values to be driven to historic highs,” the insider said. “There have also never been as many IPOs in the history of the capital market and as much money raised as there has been two years and it’s continuing … To not explore a sale in these times, when are you going to do it? Now is the time.”
Variety first reported the news.