Former Trump treasury secretary Steven Mnuchin joins Lionsgate’s board

CALIFORNIA: Lionsgate has pulled off a Washington-Hollywood crossover, appointing Steven Mnuchin to its board as the studio tightens ties with one of its biggest shareholders and steadies its governance.

The move follows a standstill and voting agreement between Lionsgate Studios, Mnuchin’s Liberty 77 Capital and MHR Fund Management, led by board chair Mark Rachesky, disclosed in a regulatory filing dated January 26. Mnuchin owns about 13 per cent of the studio.

“Steven brings a long record of public and private sector leadership and is an exceptional addition to the Lionsgate board,” Rachesky said. “His steady judgment, global perspective and deep industry insights will be enormously valuable as Lionsgate continues to grow as one of the world’s leading pure-play content studios.”

Investors liked what they saw. Lionsgate shares climbed to $10.09 in early Monday trading, a 52-week high.

The agreement curbs activist fireworks. Liberty 77 Capital and MHR are barred from lifting their combined stake beyond 17.5 per cent, making unsolicited proposals, launching proxy fights, forming shareholder groups or otherwise testing the studio’s governance guardrails.

Rachesky was explicit about the logic. “Steven and his fund are significant Lionsgate investors, and his interests are aligned with those of Lionsgate shareholders,” he said, adding that the board looked forward to working with him on “the creation of further shareholder value.”

Mnuchin, a hedge-fund operator with deep Hollywood roots, has co-financed the Avatar franchise and boasts more than 35 executive producer credits. He is also managing partner at Liberty Strategic Capital, which invests across technology, financial services, fintech and new-media content.

“I have long admired Lionsgate’s creativity, entrepreneurial spirit, and ability to excel in a competitive industry,” Mnuchin said. “I am pleased to join the company’s board. Lionsgate’s board and management team are building something dynamic and forward-looking, and I am eager to support that momentum.”

A former treasury secretary, a major shareholder and a film financier now sit at the same table. In Hollywood’s latest power play, the credits are rolling—and the stakes are rising.