Shares in Lionsgate fluctuated sharply on Tuesday after reports emerged that activist investor Anson Funds had privately urged the studio's board to either pivot decisively towards artificial intelligence or consider putting itself up for sale. Semafor first reported the letter, written by Anson's Sagar Gupta, which warned that Lionsgate risks becoming an "AI casualty" rather than an "AI beneficiary" as the market reacts negatively to new AI video tools such as Sora and Seedance. The intervention adds pressure on Lionsgate's leadership at a time when the studio is already navigating industry-wide disruption from generative AI.

Lionsgate stock closed down 49 cents, roughly 4%, at $11.87 on Tuesday after volatile early trading on the New York Stock Exchange. The company has been positioning itself as an AI adopter, having hired former YouTube and Vermillio executive Kathleen Grace as its first chief AI officer this year, while CEO Jon Feltheimer and vice chairman Michael Burns have touted efficiency gains from AI tools on recent analyst calls. Burns also addressed merger speculation, saying no substantive deal talks were underway but that Lionsgate, now standalone after separating from Starz, has "strategic optionality" given its IP and franchises amid a consolidating market.