The rights protection investor Anson Funds Management has acquired a partial stake in Lionsgate Studios and is discussing ways to unlock value with the film company.
According to Zhitong Finance APP, rights protection investor Anson Funds Management has acquired a partial stake in Lionsgate Studios (LION.US) and is discussing ways to unlock value with the film company.
Sagar Gupta, portfolio manager at Anson Funds Management, stated that Lionsgate Studios is undervalued and the company should consider a range of options, including a sale after completing the spin-off of the Starz cable and streaming service. Sagar Gupta added that Lionsgate Studios, due to its strong potential revenues and rich content library, will become a target for acquisitions by traditional and Digital Media companies as well as major technology and AI companies.
Anson Funds Management is one of the top five independent shareholders of Lionsgate Studios. Anson Funds Management has had constructive discussions with the management and Board of Directors of Lionsgate Studios. The company believes that due to governance issues and recent poor box office performance, the stock price of Lionsgate Studios is below its peers such as Disney (DIS.US) and Warner Music (WMG.US).
Sagar Gupta stated that Anson Funds Management supports the spin-off of Lionsgate Studios from Starz cable and believes the company should seek other revenue sources, such as further involvement in Commodity sales and Broadway shows. Anson Funds Management also hopes Lionsgate Studios will improve its financial disclosures. In response, a spokesperson for Lionsgate Studios stated, "We have always welcomed ideas and opinions from our shareholders."