(Image Source: Lionsgate)
2024 has proven to be a challenging year for Lionsgate, with several of its major film releases consecutively underperforming and becoming significant box office bombs. The highly anticipated "Borderlands" movie, which carried a production budget exceeding $100 million, managed to gross only $32 million worldwide. Similarly, the "The Crow" remake, produced for over $50 million, brought in a mere $23 million. Even Francis Ford Coppola's ambitious, self-financed "Megalopolis," made for $120 million, struggled to find an audience, earning just over $13 million. Adding to the studio's woes, "White Bird," the prequel to the 2017 hit "Wonder" (which grossed over $300 million), opened to a dismal $8.5 million this year. Lionsgate's cinematic fortunes in 2024 have been exceptionally bleak.
(Image Source: Lionsgate)
However, the string of box office failures isn't the most significant recent development for Lionsgate. According to a report from Bloomberg, Anson Funds has stepped in to assist the studio in exploring a potential sale. The fund believes that Lionsgate's extensive film library could make it an attractive acquisition target for traditional and digital media companies, or even emerging AI firms.
Anson Funds further noted that due to internal management issues and the consecutive box office disappointments of multiple films, Lionsgate's stock price has fallen considerably below that of industry peers such as The Walt Disney Company and Warner Music Group. The fund expressed strong support for Lionsgate's ongoing business separation, hoping that once the studio officially spins off its streaming service and premium cable channel Starz, it can develop alternative revenue streams to alleviate its financial difficulties. These potential new ventures could include launching merchandise for its intellectual properties or participating in Broadway stage productions. Additionally, Anson Funds suggested that Lionsgate consider further spinning off another subsidiary, 3 Arts Entertainment, in the future.
via： Bloomberg