Icahn Sells Lionsgate Holdings

SANTA MONICA: Carl Icahn and son Brett Icahn have agreed to sell up to 44.2 million shares of Lionsgate common stock, which is nearly all their holdings, bringing to an end the financier’s three-year-long battle to take over the studio and oust its management.

The parties also agreed to dismiss all outstanding litigation between them and release all claims they may potentially have against each other. A Lionsgate company has purchased 11 million shares from the Icahns at $7 per share. One or more affiliates of MHR Fund Management—controlled by Mark H. Rachesky, a director of Lionsgate—has purchased an additional 11 million shares of Lionsgate common stock from the Icahns at $7 per share. Over the next 35 business days, Lionsgate will also have the right to designate one or more parties to purchase up to 22 million additional share from the Icahns at $7 per share.

"We believe that this accretive and antidilutive transaction is in the best interests of all Lionsgate shareholders, and it allows the company to continue to focus on the execution of its long-term business plan," said Jon Feltheimer, Lionsgate co-chairman and CEO.

Carl Icahn wished the company well on its future slate but stated, "As some have noted, my own ‘slate’ is pretty full at the time, and I therefore determined that it is a good time to exit."