Sony, MGM Reportedly Close to Deal27 May, 2004 By: Erik Gruenwedel
Sony Corp. and Metro-Goldwyn-Mayer are close to a $5 billion acquisition deal that would see the famed Los Angeles-based film studio become a separate unit of Sony, according to a Forbes online report.
Under terms of the deal, which would reportedly be financed through a $3.5 billion loan and $1.5 billion in private equity funding, Sony Pictures Entertainment would assume MGM's film catalog of more than 4,000 titles.
When combined with its own catalog, Sony would control copyrights to more than 40 percent of all feature films ever made.
Earlier this month, Sony and MGM entered into an exclusive 20-day negotiations period that prompted MGM to reschedule its annual shareholders meeting from May 12 to June 29.
Should the deal fall through, alternate suitors reportedly include Time Warner and NBC Universal.
Representatives from Sony and MGM were not immediately available for comment.