An activist investor has snapped up Lionsgate stock and is pushing leadership on a several paths, including a sale of the Jon Feltheimer-led studio after it has officially separated from Starz.
Anson Funds Management — an alternative asset manager led by chief investment officer Moez Kassam with activism strategy run by Sagar Gupta — has nabbed a stake in the studio and is now one of the top shareholders of Lionsgate stock, a source confirms to The Hollywood Reporter.
When asked for comment, a Lionsgate rep replied, “We always welcome the ideas and input of our shareholders.” The company declined to comment on how Anson had approached Lionsgate brass or what proposals that leadership may have fielded from the activist investor. Bloomberg first reported Anson’s move.
Lionsgate’s vast 20,000-title film and television library — home to franchises like John Wick, Saw, The Hunger Games, Twilight, Now You See Me and Rambo — has been bandied about for years as a potential acquisition for a bigger studio (or tech giant) looking to scale up in Hollywood.
Anson also views the Lionsgate library, which generated $892 million in trailing 12-month revenue, as an asset for buyers. In September, the studio became the first of the majors to ink a deal with an artificial intelligence company, Runway, to mine a portion of its library to train Gen AI models.
On its latest earnings call, on Nov. 10, Feltheimer said that the studio plans its film slate to “include two to three tentpoles a year in order to create significant incremental value for our library, drive our film and television packages for buyers and in success capitalize on our biggest opportunities for outsized growth.”
The studio has also released a series of recent underperforming titles this year, including Borderlands ($32 million in global box office receipts), The Crow ($23.5 million), 1992 ($2.9 million) and The Killer’s Game ($5.8 million).
In late December 2023, the company closed its deal to buy producer Entertainment One and nab its 6,500 title library and pick up shows like Yellowjackets and The Rookie for its television division. It also owns management and production company 3Arts Entertainment and operates a products and experiences division that plots live stage shows based on its IP (like the forthcoming La La Land The Musical or Twilight In Concert).
Premium cable brand Starz is expected to formally be separated into a standalone company by the end of the year. As of its latest annual report, Lionsgate employed 1,500 staffers worldwide.
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