MGM studio in corporate time machine as it again looks to new owners for rescue
By APThursday, March 18, 2010
MGM studio relives past as binding offers are due
LOS ANGELES — Metro-Goldwyn-Mayer is up for sale again, and offers are due Friday.
Six companies made nonbinding bids in January for MGM, which owns the rights to 4,100 movies and TV shows. The studio also has a stake in future James Bond and “Hobbit” films. Now MGM is preparing to receive binding acquisition offers.
It is unclear how many suitors are still interested. Time Warner, Lions Gate Entertainment and billionaire Len Blavatnik’s Access Industries are expected to make bids.
None are expected to be more than $2 billion. That would be bitter for the lenders that financed the purchase of MGM for $5 billion in 2005 and now essentially control the company. Equity holders in MGM, such as Sony and Comcast, have already written off their investments.
