MGM Issues NDAs to Potential SuitorsNovember 25, 2009
LOS ANGELES: Heavyweight movie studio Metro-Goldwyn-Mayer has
sent out around 20 nondisclosure agreements to potential buyers, Reuters reports. Time Warner Inc. and
News Corp. are said to be among the interested parties. Lions Gate and Sony
were also on the list.
The studio has a reported $3.7 billion in debt from a 2005 buyout. It also has
a $250 million loan payment due in April, 2010.
MGM is said to be considering an auction, though creditors would like to get
some feedback on just how much potential buyers would be willing to pay. MGM is
owned by private equity firms TPG and Providence Equity Partners, and Sony and
Comcast. The group of four bought the studio out for $2.85 billion and the
assumption of $2 billion in debt.
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