MGM Denies 'For Sale' Scuttlebutt25 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.