An activist investor just gave Lionsgate a pretty simple choice: move faster on AI or put the company up for sale.
Semafor first reported the letter from Sagar Gupta, who leads the activism strategy at Anson Funds, and The Hollywood Reporter says it was sent directly to Lionsgate’s board of directors.
Investors reacted quickly. Lionsgate stock closed down around 4 percent Tuesday at $11.87 after swinging sharply earlier in the day.
Gupta’s warning is that Hollywood may be moving too slowly while AI video keeps getting better.
He pointed to the way Lionsgate shares have dropped following the release of new AI video models such as Sora and Seedance, arguing that investors increasingly assume a traditional studio is “more likely to be an AI casualty than an AI beneficiary.”
This Sounds A Lot Like What We’re Hearing About Disney
That should sound familiar.
It lines up with what insiders have told us about Disney, which is restructuring around AI as it preps for the Paramount-WBD war, cutting costs, streamlining production, and looking to get more done with fewer workers.
The difference now is that this is not just something being discussed behind closed doors.
An outside investor is putting the same warning directly in front of a studio’s board: move faster on AI, or consider selling the company.
Lionsgate Says AI Is Already Cutting Costs
Lionsgate is not ignoring AI.
Earlier this year, the studio hired Kathleen Grace, a former YouTube and Vermillio executive, as its first chief AI officer.
During the August 6 analyst call, vice chairman Michael Burns called AI “a real opportunity” to grow revenue and lower costs across production, marketing, and daily operations.
CEO Jon Feltheimer was even more direct: “It’s saving us money. It’s making us more efficient across the board.”
For Anson Funds, apparently that is still not happening fast enough.
And Lionsgate Already Has Buyers Watching
The other part of Gupta’s message — sell the company — is not coming out of nowhere.
As we exclusively reported, Disney is targeting Lionsgate, while Netflix is still circling the studio despite its denials.
Burns claimed during the same call that no substantive conversations have taken place.
At the same time, he described Lionsgate as “one of the most compelling assets in a rapidly consolidating marketplace” and said the company now has “strategic optionality” following the Starz split.
In plain English: Lionsgate believes it is in a stronger position to make a deal if the right buyer comes along.
The studio is also continuing to put its biggest franchises front and center, with all five Hunger Games movies returning to theaters in September.
That happens to be exactly the kind of proven franchise library that makes Lionsgate attractive to Disney, Netflix, or anyone else looking to get bigger.
So the message from Anson Funds is pretty clear: embrace AI faster or sell.
Considering how Hollywood is moving right now, Lionsgate could very well end up doing both.
