Yesterday I received a tip from a reliable source in film financing circles telling me that Goldman Sachs had been retained to shop MGM. “It’s doubtful that something will come out of the process. But one never knows,” my insider told me. Well, tonight Business Week‘s Los Angeles Bureau Chief Ron Grover is reporting that the proposed pricetag is a whopping $5.2 billion and the strategic buyers being sought are “other entertainment companies that would likely fold MGM into existing operations”. Grover says already the Indians have passed (i.e. Reliance ADA Group, which is financing DreamWorks 2.0) and a $3 billion offer from two-time owner Kirk Kerkorian has been rejected. Back when MGM was last on the block in 2004, Goldman Sachs handled that deal, too. Sony and Comcast and Providence Equity Partners and TPG paid roughly $5 billion in debt and equity to acquire then publicly traded MGM from its majority owner Kerkorian. Here is Grover’s report and below are my own recent MGM posts:
- Now Bond Plays Xmas Release Date Game
- Look What Tom Cruise Made Harry Say…
- Paula Wagner Is DOA At United Artists; But Was It Suicide or Murder By MGM?
- Another Top Executive Exits United Artists
- Hey, Harry Sloan, Show Us MGM’s Money
- New Joint Premium TV Channel Venture By Viacom/Paramount/MGM/Lionsgate
- Hey, What’s With MGM’s Hiring Spree?
- Desperate MGM Studios Throws Hail Mary