MGM Now Claims It's Not On The Block

MGM issued the following statement today after I and BusinessWeek received tips that Goldman Sachs had been retained to shop MGM. (See Goldman Sachs Shopping MGM — Again.) 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 Kirk Kerkorian. But one of my financing sources has this to say about MGM’s denial today: “What utter bullshit double-speak ‘to explore long term enhancements to your capital structure’. What they did is just confirm that they have retained Goldman Sachs.”:

LOS ANGELES, CA (August 25, 2008) — Contrary to recent media reports, 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.  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.

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