Steven Mnuchin has procured a small but notable stake in Lionsgate. According to a securities filing released on Tuesday, a fund controlled by Mnuchin — a former Hollywood player who served as secretary of the treasury during Donald Trump’s presidential term — acquired $30.8 million worth of shares over the past few weeks. That includes 5.5% in Class A stock which translates to around 1.7% of the overall company.
The filing mentions a “potential investment by the Reporting Persons in a spin-off of the Issuer’s studio business.”
Item 4 states “The Issuer has publicly proposed a spin-off of its studio business as a separate public company, LG Orion Holdings Inc. (“SpinCo”). The Reporting Persons may engage in any of the activities described above with respect to SpinCo, prior to or following completion of the spin-off.”
This implies Mnuchin’s fund appears less interested in whatever becomes of Starz once that network is spun off in 2024. Mnuchin raised $2.5 billion for his new fund in September 2021, including money from Saudi Arabia’s sovereign wealth fund.
Representatives for Lionsgate declined TheWrap’s request for comment.
Prior to becoming Trump’s treasury secretary, Mnuchin had a slate financing deal with Warner Bros. as part of a partnership with RatPac-Dune Entertainment. Brett Ratner and billionaire James Packer were heads of RatPac. Mnuchin served as co-chairman of Relativity Media but departed before the company declared bankruptcy in 2015. Dune Entertainment, as a solo outfit, had financed such Fox flicks as “Black Swan,” “Love and Other Drugs” and “Prometheus.”
Among other films, RatPac-Dune Entertainment helped finance DC flicks like “Suicide Squad” and “Wonder Woman.” It was considered slightly ironic to see “Wonder Woman” being partially financed by a man working under the Trump administration.
The Hollywood Reporter first reported news of Mnuchin’s investment in Lionsgate.