Would Amazon Buy Lionsgate? These Analysts Aren't Convinced

Lions Gate Entertainment Corp. (USA) LGF surged more than 5 percent on Wednesday following unconfirmed reports that Amazon.com, Inc. AMZN is evaluating a bid to acquire the movie and TV producer and distributor.

Speaking to Benzinga, Victor Anthony of Axiom Capital suggested that while Amazon appears to be comfortable with its own in-house content, in today's market it "seems like everything is on sale."

Anthony added that Amazon has shown no signs that it plans to become aggressive in the space and he would be "surprised" if Amazon shifts its focus away from in-house production.

Dan Kurnos of Benchmark told Benzinga that he "wouldn't be surprised if Amazon were looking into all options as it relates to scaling their organic content library." However, the analyst cautioned that while "content is king," movies tend to be more costly versus TV shows that "can at least start off with more manageable cost bases."

Kurnos also pointed out that culture clashes are a key factor to consider as part of M&A activity. The analyst suggested that Amazon has done an "excellent job" at absorbing Twitch "without impacting the culture."

On the other hand, Kurnos argued that if CBS Corporation CBS were to attempt an acquisition of Lionsgate, the "culture issues are a bit more pronounced" as CBS itself is a content producer.

Kurnos is unsure if CBS ever made a move to acquire Lionsgate, but the company was involved with movie production at times in its history. "I get worried since CBS tried to do it for years and failed," he said.