Icahn Ready To Pounce On Lions Gate.

If your kids lemonade stand isnt optimizing expenses, this man will make sure it will.

If your kids lemonade stand isnt optimizing expenses, this man will make sure it will.

Meet Carl Icahn.  If you don’t know already, he’s the activist shareholder that pisses off boards across the corporate world.  He’s notorious for the Carl Icahn cycle which works as follows:

  1. Icahn identifies a company that he feels is undervalued
  2. Icahn slowly amasses more and more shares of the company
  3. Icahn then announces he owns a certain percentage of the company, and demands to appoint directors to the board.
  4. Icahn wields the press to ensure they report his demands
  5. Shareholders say, “holy shit, Carl’s probably right” and usually jump on board with him.
  6. Finally, the target company gives in and allows Icahn to appoint a few directors.
  7. Icahn uses this control to steer the company towards profitability.

He’s at it again.

Last week, Carl announced he has a 14.5% share of Lions Gate Entertainment, the shop that produced the “Saw” franchise.  He has threatened to wage a proxy battle if the company doesn’t allow him to nominate his directors to their board (see step 4).

Carl feels Lions Gate isn’t managing their expenses, Lions Gate disagrees.  The battle is on.

We’ll see if I’m right about the the Carl Icahn cycle.