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MGM Shareholders Approve Sony Merger

17 Dec, 2004 By: Erik Gruenwedel

As expected, Metro-Goldwyn-Mayer shareholders today in Los Angeles approved merging the famed studio with Sony Corp. of America and a group of investors, including Comcast Corp.

Under terms of the deal, which must still be ratified by the European Union, MGM shareholders will receive $12 per share, or more than $2.9 billion, while Sony and Co., including Providence Equity Partners, Texas Pacific Group and DLJ Merchant Banking Partners, assume nearly $2 billion in MGM debt.

MGM will continue to operate as a separate entity with Sony Pictures and Sony Pictures Home Entertainment, respectively, distributing first-run films, TV and DVD catalog of more than 4,000 titles.

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