Key insights
- The upcoming Michael Jackson biopic is projected to be a major box office success for Lionsgate, potentially leading to a company acquisition and increased shareholder value. Positive early reviews and strong ticket sales are fueling expectations of a significant revenue boost, which could drive the stock price higher in the near term. The expiration of a poison pill provision may further facilitate acquisition talks.
Michael the movie is expected to gross north of $2 billion after well over 2 years of production, delays, hype, and finessing this movie to perfection. Positive critic reviews continue to pour in ahead of early screening.
Latest ticket projections show fully sold out shows as each ticket block is released, with every release showing fully committed showings.
Pay 1 will be huge for this movie.
$LION heading into acquisition with this movie to pay down it's debt will be a direct return to shareholders who hold on for the next 8 weeks. The poison pill expires, Michael is released, and the company is sold. That is the path, and the next domino to fall.
Expect $15/share in May when Michael is a proven success and bidders are finally publicly released.
Lionsgate Studios Inc. $LION P/T: $17.50 EV