In the latest move in their on-going war for the control of the company, Lionsgate watered down activist investor Carl Icahn's share in the firm from 37.9% to 33.5%, reports VARIETY. They did so by flipping $100 million in debt into stock. Additionally, pro-Lionsgate management investor Mark Rachesky has grown his stake from 18.6% to 28.9%.

These moves come right after Icahn launched a new takeover bid, offering $6.50 per share. The new offer expires on Aug. 25.

Lionsgates hopes to pressure Icahn into giving up his proxy fight in exchange for seats on the board for himself and/or his son Brett.