If true, it puts Carl Icahn on the Hollywood sidelines after selling stakes in Blockbuster before it went into bankruptcy and most recently Lionsgate, in which he sold his 33% stake after he tried and failed to merge it with MGM. The latest move makes sense for MGM, which last week filed a draft IPO statement and hired JPMorgan Chase and Goldman Sachs to manage the offering. It suggests that MGM has come a long way from when it emerged from bankruptcy in 2010. An insider tells Deadline about the Icahn move, which separates MGM from what Bloomberg says is its largest shareholder: “It shows that MGM is very serious about their IPO. A public offering is hard to do when Icahn is in your stock, because he keeps investors sitting on the sidelines.” According to a confidential letter obtained by the LA Times, MGM is paying Icahn $33.50 for each of his 17.6 million shares, so his approximate 25% stake sells back to MGM for $590 million – though the paper did not know if that made him a profit. MGM could be ramping up for its IPO by year’s end as two of its major film properties hit the big screen: the James Bond pic Skyfall on November 9 and the first installment of Peter Jackson’s The Hobbit on December 14.
Does Carl Icahn Selling MGM Stake Clear Way For IPO?
For all of Deadline’s headlines, follow us @Deadline on Twitter
Sign up for Newsletters
Trending Now on Deadline
More From Team
- Film Arcade And Paramount Team On Romantic Comedy 'Love, Rosie'
- Pete Hammond's Telluride Q&A With Makers Of 'The Imitation Game' (Video)
- UPDATE: Joan Rivers Remains In Serious Condition Following Thursday Cardiac Arrest
- UPDATE: Abrams Artists & 'Ghost Adventures' Producer End Commissions Dispute
- Wil Wheaton Blogs His Syfy Show Is Toast
- Miranda Mayo Joins 'Pretty Little Liars'; Samm Levine In 'Selfie'