Legendary Entertainment, the studio behind the Dune and Godzilla franchises and backed by Apollo Global Management, is in preliminary talks to acquire Lionsgate Studios, Bloomberg reported, citing people familiar with the matter. The discussions currently center on co-producing a handful of films to gauge the fit between the companies before any formal offer is made. Lionsgate, whose library includes the Hunger Games and John Wick series, completed a separation from its Starz pay-TV and streaming business in May, leaving the studio as a stand-alone company with a market capitalization of roughly $1.8 billion. Apollo’s investment and Legendary’s 2024 buyout of Dalian Wanda Group’s minority stake have given the Burbank-based studio greater freedom to pursue mergers and acquisitions. Spokespeople for both Legendary and Lionsgate declined to comment, and the talks could still end without a transaction.