Michael Jackson Biopic Surpasses $1 Billion as Lionsgate Stages Major Hollywood Comeback
Lionsgate has achieved a major box-office milestone after its Michael Jackson biographical drama, Michael, surpassed $1 billion in worldwide ticket sales, becoming the independent studio’s first film to reach the landmark figure.
The result represents a dramatic change in fortune for Lionsgate, which only recently appeared to be struggling for relevance in an entertainment industry increasingly dominated by technology companies, streaming platforms and large media conglomerates.
Released after several bigger studios reportedly declined to finance the project, Michael was considered a significant commercial risk. Concerns centred on the continuing controversy surrounding allegations made against Jackson during his lifetime, as well as the challenge of presenting the complicated legacy of one of the world’s most famous entertainers.
Lionsgate ultimately moved forward with the estimated $150 million production. Universal and Kino Films joined the company in handling distribution in overseas markets.
The decision has now delivered historic results.
According to industry data, the film crossed the $1 billion mark at the global box office over the weekend, giving Lionsgate its biggest theatrical success to date.
The achievement has strengthened the studio’s position after several years of disappointing releases and declining revenue.
In 2024, Lionsgate released 17 films but collected only about $251 million at the North American box office. That total was dramatically lower than the studio’s performance in 2012, when franchises such as The Hunger Games, Twilight, Madea and The Expendables helped generate approximately $1.72 billion in domestic ticket sales.
As the downturn continued, investor confidence weakened. Lionsgate’s shares fell to their lowest point since the pandemic period, when cinemas around the world were closed and the future of theatrical moviegoing appeared uncertain.
Many analysts believed the studio’s most realistic option was to sell itself to a larger entertainment company.
That view reflected broader consolidation across Hollywood. Established studios have increasingly pursued mergers, partnerships and corporate restructuring to compete with global streaming platforms and large technology businesses.
Lionsgate, however, has now created more strategic possibilities for itself by producing a series of commercially successful films.
Before Michael reached its billion-dollar milestone, the studio scored another surprise hit with The Housemaid, a thriller adapted from Freida McFadden’s bestselling novel.
Produced for an estimated $35 million, the film earned approximately $400.5 million worldwide, significantly outperforming industry expectations.
Lionsgate is already developing follow-up films for both Michael and The Housemaid. The two successes have given the company something no other Hollywood studio has achieved this year: two newly established theatrical franchises.
The company’s upcoming schedule also includes several projects connected to well-known properties.
A new Hunger Games instalment, Sunrise on the Reaping, is scheduled to reach cinemas in November. Lionsgate is also developing a Rambo prequel, additional John Wick films, Now You See Me 4 and two sequels to Mel Gibson’s The Passion of the Christ.
The studio is additionally working with horror producer Jason Blum on a new interpretation of The Blair Witch Project. It has also partnered with filmmaker James Wan to revive the long-running Saw franchise.
These projects suggest Lionsgate is attempting to balance established brands with newly discovered intellectual property.
The company’s improved performance has been reflected in the market. Lionsgate shares have reportedly climbed by roughly 130 per cent since June last year.
In its most recent financial quarter, which ended before Michael was released, the studio reported a 52 per cent increase in operating profit. Earnings reached 24 cents per share, compared with a loss of 44 cents per share during the same period a year earlier.
Industry analysts have credited Lionsgate with proving that an independent studio can still produce major theatrical successes despite intense competition.
Unlike Disney, Warner Bros. Discovery, Comcast and other corporate entertainment groups, Lionsgate does not have theme parks, telecommunications operations or large consumer-product divisions to support it when movies fail.
Its financial performance is therefore more directly influenced by the success or failure of individual films and television shows.
That structure gives Lionsgate greater independence but also creates significant risk. A single blockbuster can transform the company’s finances, while several unsuccessful releases can quickly damage its earnings.
This vulnerability was demonstrated by films such as Borderlands.
The action-comedy adaptation reportedly cost around $115 million to produce but earned only approximately $33 million worldwide. Its poor performance contributed to questions about the studio’s creative strategy and long-term stability.
Lionsgate typically attempts to reduce its exposure by selling international distribution rights and spending less on advertising than larger studios. However, those safeguards were not enough to prevent losses during its weaker period.
The recent turnaround has been closely associated with Adam Fogelson, who became chairman of Lionsgate’s Motion Picture Group in 2024.
Fogelson previously led Universal Pictures and developed a reputation for identifying projects capable of becoming sustainable franchises.
The first group of Lionsgate films overseen under his leadership began arriving in cinemas late last year. Most have performed strongly, including the lower-budget horror thriller The Long Walk and the sequel Now You See Me: Now You Don’t.
The company has reportedly captured about 10 per cent of the North American box office so far this year, nearly double the market share attributed to Warner Bros.
Fogelson has indicated that an announcement about a potential Michael sequel could arrive later in the summer.
Lionsgate is also developing a new Dirty Dancing film featuring Jennifer Grey’s return as Frances “Baby” Houseman. The studio continues to explore options for introducing the Twilight property to a younger generation of viewers.
While its film division currently provides the company’s strongest momentum, Lionsgate also maintains a substantial television business.
The studio produces scripted programming for multiple platforms and broadcasters, including The Studio for Apple TV, The Rookie for ABC and The Hunting Wives for Netflix.
Chief executive Jon Feltheimer previously said Lionsgate expected to nearly double the number of scripted television episodes delivered this year compared with the previous year.
The company also owns a library of approximately 20,000 films and television episodes. That collection reportedly produces more than $1 billion in annual revenue through licensing, distribution and streaming agreements.
Despite its stronger position, the possibility of a sale has not completely disappeared.
Lionsgate has previously attracted interest from companies including Sony Pictures Entertainment, Hasbro and Legendary Entertainment, the studio associated with franchises such as Dune and Godzilla.
Recent reports also suggested that Netflix might be considering an acquisition, although the streaming company denied those claims.
Potential buyers would need to consider Lionsgate’s considerable debt.
The company reportedly holds about $1.78 billion in long-term debt, along with approximately $1.29 billion in additional borrowing linked to specific film and television productions.
Ownership structure may also influence any future negotiations.
Lionsgate chairman Mark Rachesky and former US Treasury secretary Steven Mnuchin collectively control roughly one-quarter of the company’s shares. However, Lionsgate recently simplified its voting structure by eliminating its dual-class share system, a move that could make any future merger or takeover discussions less complicated.
The success of Michael has nevertheless reduced the immediate pressure to find a buyer.
Instead of appearing like a weakened studio in need of rescue, Lionsgate can now present itself as a company capable of identifying overlooked projects, controlling costs and building valuable franchises.
The Michael Jackson biopic also demonstrates the potential rewards of supporting films that larger studios consider too controversial or unpredictable.
However, Lionsgate’s revival will depend on whether it can continue delivering hits. Independent studios have fewer financial protections than companies with diversified global businesses, meaning future disappointments could quickly weaken the gains produced by Michael and The Housemaid.
The pressure will therefore remain on Fogelson and the wider leadership team to maintain quality across the company’s growing schedule.
For now, the billion-dollar performance of Michael stands as a major victory for Lionsgate and a reminder that smaller Hollywood studios can still compete when the right project connects with global audiences.
The studio once appeared to be moving toward irrelevance or acquisition. Its latest run of successes has instead given it renewed influence, stronger financial results and greater control over its future.
