BABA, LGF: Lionsgate Stock Soars on Big Alibaba Stake

Lionsgate (LGF) stock soared Friday afternoon following news of Alibaba’s intention to acquire a 37% stake on the company.

LGFMark Rachesky — Lionsgate co-chairman — owns a 37.4% stake on the company through MHR Fund Management, his investment firm. He is expected to announce the sale of his stake in November or earlier.

Alibaba is reportedly intent on using part of the $25 billion it earned on its record-breaking IPO to acquire Rachesky’s stake. MHR manages about $6 billion in capital.

Lionsgate and Alibaba recently announced a partnership to bring an online streaming service to China. The two will bring several prominent Lionsgate films such as the Twilight series to the service.

LGF stock is up 5.1% Friday afternoon. BABA stock is up 2.7%.

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