Activist Investor Pushes for Change at Lionsgate Studios

(Reuters) – Activist investor Anson Funds Management has taken a stake in Lionsgate Studios and is urging the company to consider a range of options, including a potential sale, Bloomberg News reported on Tuesday, citing Sagar Gupta, the firm's head of activism.

The development comes at a time when Lionsgate—recently public through a special purpose acquisition company—faces corporate governance issues and box-office struggles, highlighted by the recent flop of Megalopolis.

"We always welcome the ideas and input of our shareholders," a Lionsgate spokesperson told Reuters.

Anson Funds did not immediately respond to a request for comment.

Gupta stated that the studio behind The Hunger Games and John Wick is undervalued and should consider various options after severing ties with the Starz cable and streaming service, Bloomberg added.

Lionsgate could attract interest as a takeover target from both traditional and digital media companies, along with major technology and artificial intelligence players, the report said.

Additionally, Lionsgate could contemplate potential divestitures, including its unscripted television and 3 Arts businesses, according to Anson Funds.

Anson has also recommended that Lionsgate explore alternative revenue avenues, such as expanding into merchandising and events like Broadway shows, while improving its financial disclosures, Bloomberg said.