Former Treasury Secretary Steven Mnuchin’s Fund Acquires Significant Stake in Lionsgate

In a strategic move, Liberty Strategic Capital, led by former Secretary of the Treasury Steven Mnuchin, has acquired a significant 5.5% stake in Lionsgate Class A voting shares. This comes at a crucial time for the company as it prepares for a $500 million acquisition of eOne and plans to separate its studio and streaming businesses. The investment of $30 million translates to a 1.7% overall stake in Lionsgate, including its non-voting shares. With a market cap of approximately $1.79 billion, Lionsgate has not commented on the news, which was revealed in an SEC filing. The filing suggests that the impending separation of Lionsgate and Starz may have influenced the acquisition. Mnuchin, who served as the 77th Secretary of the Treasury under former President Donald Trump, launched Liberty Strategic Capital in 2021, focusing on technology, financial services/Fintech, and new content. The document also states that the new stakeholder may engage with other shareholders, management, and board members of Lionsgate on various matters, including potential investments and restructuring. Mnuchin, a former Goldman Sachs banker, has previous experience in the media and entertainment industry, having led the board of Relativity Media and co-founded Dune Capital and RatPack-Dune Entertainment. The entrance of an activist investor typically has a positive impact on a company’s stock price, as evidenced by the nearly 5% increase in Lionsgate shares in after-hours trading.