Activist investor urges Lionsgate to pivot for AI or consider sale

Activist shareholder Anson Funds has urged Lionsgate to either reshape its business for the emerging AI landscape or put the company up for sale, according to a July letter to the board. The letter argues that the rise of generative AI has forced investors to label firms as either AI winners or losers, and notes that Lionsgate’s stock reacted negatively to the debut of AI video models like Sora and Seedance. Anson points to the studio’s extensive catalog of roughly 20,000 titles as a source of potential premium value through AI-related licensing, but says the firm has struggled to convey this to the market.

Lionsgate, known for franchises such as Rambo and The Hunger Games, has been fielding informal interest and has told investors it has not engaged in substantive acquisition discussions. The company is receiving informal advice from at least two investment banks but has not hired any to conduct a formal strategic review. Netflix has publicly denied pursuing a purchase.