() -Activist investor Anson Funds Management has taken a stake in Lionsgate Studios and is urging the company to consider a range of options, including a potential sale, Bloomberg News reported on Tuesday, citing Sagar Gupta, the firm’s head of activism.

The development comes at a time when Lionsgate — which went public this year via a special purpose acquisition company — is facing corporate governance issues and box-office underperformance, including the recent flop of Megalopolis.

“We always welcome the ideas and input of our shareholders,” a Lionsgate spokesperson told .

Anson Funds did not immediately respond to a request for a comment.

Gupta said that the studio behind The Hunger Games and John Wick is undervalued and should consider options after it completes a separation from the Starz cable and streaming service, Bloomberg added.

Lionsgate would appeal as a takeover target to traditional and digital media companies, along with major technology and artificial intelligence players, the report said.

It also added that Lionsgate could consider potential divestitures, including its unscripted television and 3 Arts businesses, according to Anson Funds.

Anson has also suggested that Lionsgate should pursue alternative revenue streams, such as diving further into merchandising and events like Broadway shows, and improve its financial disclosures, Bloomberg said.