Lions Gate Entertainment Corp's Chief Executive Officer, Jon Feltheimer, recently made headlines after increasing his stake in the company with a substantial purchase of 100,000 shares, as indicated by a recent SEC filing, Deadline reports. The acquisition, executed on March 7, 2024, saw Feltheimer acquiring 50,000 Class A shares and 50,000 Class B shares. Some close to the CEO think Michael Jackson is the reason for the recent surge in purchases.

Vice Chair Michael Burns revealed the motive behind Feltheimer's significant purchase during a Deutsche Bank media conference. Burns attributed Feltheimer's decision to visit the set of the upcoming Michael Jackson biopic, currently being filmed on the Sony lot. Burns stated, “He just came back and just said, ‘This thing is going to be incredible’,” indicating that Feltheimer's confidence in the project may have influenced his investment.

Further details emerged from an SEC filing on Monday, confirming Feltheimer's acquisition of both Class A and B shares. The move comes amidst preparations for Lions Gate Entertainment Corp's upcoming split with Starz, with Burns noting that approximately 13%-15% of the studio’s equity will transition into a SPAC and trade publicly on the NYSE under the stock symbol LION. The remaining portion of the studio will turn into the new company by the end of calendar 2024, creating two distinct entities in Lionsgate and Starz.

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Executives at Lions Gate Entertainment Corp view the stock as undervalued, particularly with the combined strength of its motion pictures, television production, and media networks divisions. The separation from Starz has been a long-anticipated development, with positive reviews from Wall Street contributing to a recent uptick in the stock's performance.

Feltheimer's purchase of shares signals his confidence in the company's future prospects, especially in light of promising projects such as the Michael Jackson biopic.