What is Carl Icahn up to now? The famed activist investor wants to raise his stake in movie production house Lionsgate Entertainment
When Icahn takes a big interest in any company, he often harbors dreams of mergers and consolidation. He's been waging proxy battles at Biogen Idec
Given this history of cooking up buyout bait, I can only imagine that Icahn wants one of the big studios to gobble up Lionsgate, which is the biggest of the independents today. Lionsgate runs on some of the thinnest margins in the entertainment industry and is saddled with more debt than cash. But the company also owns a tempting catalog of movie franchises like the Saw and Hostel horror series, the Transporter action series, and Tyler Perry's avalanche of romantic dramedies.
Lionsgate is looking to buy the Miramax studio from Walt Disney
The Icahn camp hasn't confirmed any of this, but I wouldn't be surprised to see Disney hauling out its wallet again before too long.
Can you come up with any other reason for Icahn's increased investment? Do tell in the comments below, please.