Lionsgate Update: Cuban May Side With Icahn

Even though Stock Wars is on a temporary summer break, I thought Mark Cuban‘s comments about his Lionsgate ($LGF) stake this morning were worthy of mention.

Appearing on David Faber‘s excellent new lunchtime show, Cuban mentioned that he may be tendering his shares to Carl Icahn.  This would put Carl in the driver’s seat in terms of him becoming the largest shareholder.

Here’s some color from Nikki Finke

Until today, Icahn had not been able to get traction with Lionsgate stockholders for his $7-a-share tender offer. But what Cuban said this morning on CNBC is “I really think I’m going to tender and I will have a conversation with them today… I have my reasons I don’t want to get into. But I think it’s the right move for right now and the right move for the long term, for the company and me.”

With Cuban’s shares, Icahn would become Lionsgate’s largest shareholder. Cuban owns 5.3% of Lionsgate shares, and Icahn already owns nearly 19%. To date, only about 4% of the studio stockholders had agreed to tender to him despite Icahn extending the offer, which now expires on June 16th. So, altogether, Icahn could own at least 28% of Lionsgate stock.

We’ll see what Cuban decides to do, he is certainly unpredictable.

Source:

Mark Cuban Threatening to Back Icahn (Deadline Hollywood)