Activist investor Anson Funds is urging movie studio Lionsgate to reposition itself for opportunities created by generative artificial intelligence or to consider putting the company up for sale. Sagar Gupta of Anson sent a July letter to Lionsgate’s board, a copy of which was reviewed by Semafor.
In the letter, Gupta argued that the rise of generative AI has led markets to categorize companies sharply into “AI winners” and “AI losers.” He noted that Lionsgate’s stock has reacted sharply and negatively following the release of new AI video models such as Sora and Seedance, which Anson believes reflects a default market assumption that a traditional studio is more likely to be an AI casualty than an AI beneficiary.
Anson also argued that Lionsgate could command a premium because it owns a library of roughly 20,000 titles that could generate meaningful IP licensing revenue — but that management has struggled to clearly convey that potential to investors.
Market interest and strategic options
Semafor has reported that Lionsgate has faced informal interest for some time, as activists and other market participants view the company as a potential takeover target. With an extensive library at a moment when streaming platforms are hungry for content, the studio has signaled to investors it is open to considering all options.
For this article, Lionsgate declined to comment. On its recent earnings call, however, the company told investors it has not “engaged in any substantive conversations” with potential acquirers.
Anson’s position and market reaction
Anson Funds took a stake in Lionsgate last year and has been meeting with management to press the company either to sell or to strengthen and better communicate its AI strategy as shares face pressure from competition posed by AI labs’ video tools.
Lionsgate shares are up 36% year-to-date, but they have fallen 7% in the past month amid growing questions about the company’s business model going forward.
In his July letter, Gupta pointed to recent industry deals to illustrate that technology and streaming players are willing to acquire premium intellectual property rather than merely license it: examples cited include Amazon’s acquisition of MGM, Microsoft’s acquisition of Activision Blizzard, and the contested negotiations around Warner Bros. Discovery involving Netflix and Ellison-backed Paramount Skydance.
Advisors and potential buyers
According to people familiar with the discussions, Lionsgate has received informal advice from at least two investment banks but has not retained either firm to conduct a formal strategic review. A sale process could attract a range of suitors, including large technology companies, though one major player has already indicated it would not participate: Netflix denied earlier this year that it was pursuing the studio, according to Semafor.
The outcome of these discussions will shape both Lionsgate’s short-term market performance and its longer-term strategic direction: the company can either articulate and execute on an AI-related value proposition or remain open to a sale process that could monetize its extensive content library.
