Lionsgate jumps after report on potential takeover interest

Shares of Lionsgate (LGF.A) are on the rise after a report said the company has attracted takeover interest from several suitors. This comes as Shari Redstone, president of National Amusements, which controls both CBS (CBS) and Viacom (VIAB), is pushing to re-merge the two companies. According to Deadline, a recombined CBS-Viacom is among Lionsgate's possible suitors, alongside Amazon (AMZN) and Verizon (VZ). POTENTIAL LIONSGATE TAKEOVER: According to Deadline Hollywood, Lionsgate has attracted possible suitors including Amazon, Verizon and the CBS-Viacom combination. The publication sees a potential deal as beneficial for both parts, with the studio getting the resources to survive in a media environment increasingly dominated by giants, and any suitor substantially raising its profile in content. The interest comes as Verizon has been bulking up its mobile video offerings and Amazon has invested billions in developing original content for its Prime service, the report noted. VIACOM-CBS MERGER: Last week, TheWrap said Shari Redstone had concluded that a bigger footprint was necessary and was pushing to re-merge Viacom and CBS. Yesterday, The Wall Street Journal also reported that Redstone is advocating for new blood on the board of CBS and has reached out to CBS CEO Leslie Moonves to jump-start talks about merging the company and Viacom, potentially as soon as this quarter. Moonves, however, has resisted the idea in the past and still has concerns, the publication said, citing people familiar with the matter. PRICE ACTION: Near noon, Class A shares of Lionsgate have gained about 7.7% to $34.76.