MGM for sale?

Several news outlets have reported that Metro-Goldwyn-Mayer, the studio famous for its roaring lion as well as the James Bond films among many others, may be up for sale once more. Separate sources, including LA Weekly journalist Nikki Finke, Business Week and TheDeal.com have stated that Goldman Sachs has been asked to shop the studio … Continued

mgm-logo.jpgSeveral news outlets have reported that Metro-Goldwyn-Mayer, the studio famous for its roaring lion as well as the James Bond films among many others, may be up for sale once more.

Separate sources, including LA Weekly journalist Nikki Finke, Business Week and TheDeal.com have stated that Goldman Sachs has been asked to shop the studio around at the heavy price of $5.2 billion.

MGM is currently owned by a consortium of companies that includes Sony and Comcast, in association with other companies such as TGP Capital, Providence Equity Partners and MGM Mirage. The company was acquired on 8 April 2005 by the collective group, who paid off around $5 billion in debt and other costs to absorb the historic studio.

MGM has unequivocally denied the reports, which have been published in other news outlets in the last few days. In a press release dated 25 August 2008, the studio stated: “Metro-Goldwyn-Mayer Studios Inc. (MGM) is not for sale. There is no ‘asking price’ for the company. MGM’s existing financing arrangements are sufficient to meet its needs. Goldman Sachs has been retained to explore enhancements to MGM’s long-term capital structure.” In addition, the company stated that reported troubles with its owners are little more than fabrication. “All of the MGM shareholders, including Providence Equity Partners, TPG, Sony Corp. Of America and Comcast Corp, are pleased with the Company’s current momentum and are committed to the future growth of the studio.”

We will continue to bring you updates on this story as it develops.