Mets Owner Steve Cohen Makes $64M Bet on Lionsgate Studios Just Days Before Earnings—Stepping Up Stake by 220%

New York Mets owner and billionaire investor Steven Cohen has made a significant move into Lionsgate Studios, acquiring over 10 million shares worth more than $64 million (£48.7 million) just days before the company's fiscal Q2 earnings announcement on 6th November.

Cohen, renowned for his high-risk, high-reward investing approach, founded SAC Capital Advisors—once among the most successful hedge funds—before establishing Point72 Asset Management. With a net worth estimated at $23 billion (£17.5 billion), Cohen's hedge fund has delivered impressive gains over recent years, outperforming the broader market.

Cohen's Track Record of Success

Over the past three years, Point72's top 20 holdings have gained a cumulative 131%, compared to the 64% rise in the S&P 500. The fund also posted an 18% return in Q2 2025, underscoring Cohen's knack for strategic investments.

His latest stake increase in Lionsgate (stock ticker: LION) signals strong confidence in the entertainment company's future prospects. According to the latest SEC filing, Point72 bought over 10 million shares at an average price of $6.43 (£4.90) per share, boosting its total holdings to more than 14.6 million shares.

A Bold Move Ahead of Earnings

The timing is notable—this purchase comes just days before Lionsgate is expected to release its fiscal second-quarter earnings. Shares of Lionsgate surged over 3.4% in after-hours trading Monday following Cohen's disclosure, reflecting investor optimism.

Lionsgate, the studio behind blockbuster franchises like The Hunger Games, recently separated its film studio business from its streaming and TV division, Starz. The studios now operate as a standalone entity, focusing solely on content production and licensing, while Starz was rebranded as Starz Entertainment.

Financial Performance and Growth Strategies

In fiscal Q1, Lionsgate reported a slight narrowing of losses and a revenue increase to $525.9 million (£400.8 million) from $486.9 million (£371 million) a year earlier. This growth was driven primarily by a 20% increase in revenue from its television production segment.

CEO Jon Feltheimer highlighted the company's strategic steps toward sustainable growth:

'In a post-separation transitional year for the studio, we are taking a number of important steps toward returning to solid growth in fiscal 2027. We have three major film tentpoles set for release in the coming fiscal year, expect to double our scripted television series deliveries next year, and are innovating across our brands and new revenue streams.'

He added that the company's efforts contributed to a record 12-month revenue performance and increased visibility into future earnings.

Analyst Outlook and Market Expectations

In September, Baird initiated coverage of Lionsgate with an 'Outperform' rating and a price target of $8 (£6.10) per share. The brokerage pointed to Lionsgate's strong film slate, including upcoming Hunger Games and Resurrection of the Christ instalments, which could attract takeover interest once a shareholder rights plan expires next year.

Additionally, Lionsgate recently announced a collaboration with Virtual Brand Group and Super League to launch an immersive experience for The Strangers: Chapter 2 within popular games on Roblox, which boasts over 111.8 million daily active users. This move exemplifies Lionsgate's efforts to innovate and diversify revenue streams.

Cohen's substantial stake increase in Lionsgate just days before earnings reflects confidence in the studio's strategic direction and growth potential amid a shifting entertainment landscape. As Lionsgate continues to focus on content production and expanding its digital footprint, investor interest and analyst optimism are likely to grow.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.