Anson Funds Management has acquired a stake in Lionsgate Studios (LION, Financial) and is in discussions with the company to unlock its value. Portfolio manager Sagar Gupta believes Lionsgate is undervalued and should explore options, including a potential sale after spinning off the Starz cable and streaming services.
Gupta highlights that Lionsgate's strong potential earnings and extensive content library make it an attractive acquisition target for traditional and digital media companies, as well as major tech and AI firms. Anson Funds, a top-five independent shareholder, has engaged in constructive talks with Lionsgate's management and board.
They argue that governance issues and recent box office underperformance have led to a stock price lagging behind peers like Disney (DIS) and Warner Music (WMG). Anson supports the Starz spinoff and suggests diversifying revenue through merchandise and Broadway shows, while also improving financial disclosures.
