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6 Companies Invited To Bid On MGM

The Hollywood Reporter, Tuesday, March 9, 2010 11:34 PM

Six invited companies are expected to place updated offers for MGM by March 19, the newly set deadline on second-round bidding. Still, it may be heavy going for the for-sale studio. "The deeper you dig, the more bad news you get," a participant in the due diligence said. "The numbers just aren't getting any better." The chief problem involves MGM's large but heavily exploited film library, which hasn't been replenished with attractive new titles in years.

Those invited to the binding round of bidding include Time Warner, Lionsgate, Liberty Media, Summit Entertainment, Access Industries and Elliott Management. The Lion has a big interest payment to lenders coming due March 31 and the studio's credit facility expires April 8. Time Warner might be in the best position to make a compelling offer. The Lion film library would fit well with its Warner Bros. catalog, which boasts pre-1986 MGM titles originally acquired by Ted Turner.

Read the whole story at The Hollywood Reporter »

m&a, movies

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