SCHEDULE 13D/A: Liberty 77 Capital Group Discloses 12.6% Stake in Lionsgate Studios Corp. Following Strategic Acquisitions

Liberty 77 Capital and its affiliated funds have significantly increased their beneficial ownership in Lionsgate Studios Corp. to 12.6% through a combination of a spin-off and open market purchases totaling approximately $59.1 million.

Summary

• Reporting Persons, including Liberty 77 Capital L.P. and Steven T. Mnuchin, have filed an Amendment No. 1 to Schedule 13D regarding their beneficial ownership in Lionsgate Studios Corp.
• The Reporting Persons collectively beneficially own 35,988,636 Common Shares, representing 12.6% of the outstanding shares as of May 6, 2025.
• This ownership includes 27,056,800 Common Shares received in connection with the plan of arrangement separating Lionsgate Studios Corp. (LG Studios Business) from Lions Gate Entertainment Corp.'s (LGEC) Starz business.
• Additionally, 8,931,836 Common Shares were acquired through open market transactions for an aggregate consideration of approximately $59.1 million.
• The open market acquisitions occurred between May 20, 2025, and May 29, 2025, with prices ranging from $6.47 to $6.80 per share.

Sentiment

Score: 7

Explanation: The filing indicates a significant and strategic investment by a notable financial group, suggesting confidence in Lionsgate Studios Corp. The stated intent to engage with management and potentially influence strategy is a positive sign for active oversight, though the document itself is purely factual about ownership.

Positives

• A significant institutional investor, Liberty 77 Capital, led by Steven T. Mnuchin, has taken a substantial 12.6% stake in Lionsgate Studios Corp., indicating confidence in the company's prospects.
• The acquisition of additional shares through open market purchases demonstrates a proactive investment strategy and commitment to the Issuer.

Risks

• The Reporting Persons' investment strategy is subject to market conditions, the Issuer's performance, and general economic conditions, which could lead to increases or decreases in their investment position.
• The value of the investment is dependent on the Issuer's business, prospects, financial condition, and results of operations.

Future Outlook

The Reporting Persons acquired the securities for investment purposes and intend to continuously review their investment. They may increase or decrease their position, make additional acquisitions (open market, private, or direct with the Issuer), hold, dispose of, or enter into derivative transactions based on the Issuer's performance, market conditions, and other factors. They also reserve the right to engage in communications with stakeholders and make suggestions regarding the Issuer's operations, strategy, and board composition.

Management Comments

• "The Reporting Persons have acquired the securities reported in this Schedule 13D for investment purposes and intend to review such investment in the Issuer on a continuing basis."
• "The Reporting Persons may, depending on the Issuer's performance and other market conditions, increase or decrease their investment position."
• "Consistent with the Reporting Persons' investment purposes, they may engage in communications with, without limitation, one or more stockholders of the Issuer, management of the Issuer and/or one or more members of the Issuer's board of directors and may make suggestions or proposals concerning the Issuer's operations, prospects, business and financial strategies, strategic transactions, assets and liabilities, business and financing alternatives, the composition of the board of directors and such other matters as the Reporting Persons may deem relevant to their investment in the Issuer."

Industry Context

This filing indicates a significant investment by a prominent financial group, Liberty 77 Capital, led by Steven T. Mnuchin, into Lionsgate Studios Corp. This suggests a belief in the value and future prospects of the newly separated studio business within the media and entertainment industry. Such a substantial stake by an activist-leaning investor could signal potential strategic shifts or increased scrutiny on the company's performance and governance.

Comparison to Industry Standards

• NA This document is a Schedule 13D/A filing detailing an investor's beneficial ownership and intentions, rather than a company's financial performance or operational results. Therefore, direct comparisons to industry-specific financial benchmarks or project outcomes are not applicable.

Stakeholder Impact

• Shareholders: The significant stake by Liberty 77 Capital and Steven T. Mnuchin could signal increased investor confidence and potential for strategic engagement, which might influence share price and corporate direction.
• Management: The Reporting Persons' stated intent to communicate with management and the board, and potentially make suggestions, indicates a more active oversight role.

Next Steps

• The Reporting Persons may increase or decrease their investment position in Lionsgate Studios Corp.
• They may make additional acquisitions of Common Shares or other securities of the Issuer through open market or privately negotiated transactions.
• They may decide to hold or dispose of all or part of their investments.
• They may enter into derivative transactions with respect to the Issuer's securities.
• They may engage in communications with stockholders, management, and the board of directors.
• They may make suggestions or proposals concerning the Issuer's operations, strategy, and board composition.

Key Dates

Recommendation

Keywords

Lionsgate Studios Corp., Liberty 77 Capital, Steven T. Mnuchin, SEC Filing, Schedule 13D/A, Common Shares, Beneficial Ownership, Investment, Open Market Purchases, Spin-off, Media, Entertainment