Lions Gate pulls out of bidding for MGM studio after asked to increase bid

Lions Gate pulls out of bidding for MGM studio

LOS ANGELES — Lions Gate Entertainment has pulled out of the bidding for the beleaguered Metro-Goldwyn-Mayer movie studio after it was told its acquisition offer was inadequate and was asked to raise it.

That’s according to a person with knowledge of the matter. The person spoke on condition of anonymity because the bids are meant to be confidential.

The person says Lions Gate is not prepared to pay more than its bid of between $1.3 billion and $1.4 billion and pulled out of the process.

The withdrawal, reported earlier by The Wall Street Journal, means Time Warner’s bid to acquire the iconic Hollywood studio for $1.5 billion may be MGM’s best chance to avoid foreclosure by its creditors.