Sony, MGM Open Merger Talks19 May, 2004 By: Erik Gruenwedel
As expected, Sony Corp. said today it has entered into an exclusive 20-day negotiations period regarding the possible acquisition of film studio Metro-Goldwyn-Mayer, according to a Reuters report.
A Sony representative declined comment; an MGM representative was not immediately available for comment.
Citing “strategic alternatives,” MGM earlier this month said it would delay its annual shareholders meeting from May 12 to June 29.
In a statement, MGM said it required the additional time so company officials could “evaluate such alternatives.”
With more than 10,000 catalog titles, including a reported multibillion-dollar acquisition bid from Time Warner, MGM two weeks ago said it would issue an $8 per share dividend totaling $1.9 billion.