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MGM Denies 'For Sale' Scuttlebutt

25 Aug, 2008 By: Erik Gruenwedel

Metro-Goldwyn-Mayer Studios Aug. 25 denied media reports it was on the sale block for $5.2 billion.

The famed film studio, which is co-owned by private equity firms TPG, Providence Equity Partners, Sony Corp. of America and Comcast, lost $400 million in its most recent fiscal year, ended March 31, according to BusinessWeek.

“There is no ‘asking price’ for the company,” the studio said in a statement. “MGM’s existing financing arrangements are sufficient to meet its needs.”

The studio said it had retained Goldman Sachs to “explore enhancements” to its long-term capital structure.

MGM, whose DVDs are distributed by 20th Century Fox Home Entertainment under a five-year agreement that expires in 2011, is slated to regain rights to the lucrative James Bond franchise in 2009.

Sony currently controls those rights as a condition of its involvement in the 2004 acquisition of MGM from billionaire Kirk Kerkorian.

Fox spokesperson Steve Feldstein said the MGM titles are "rolling along" fine.

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