Time Warner offers $1.5 billion to own MGM

MUMBAI: Time Warner has bid $1.5 billion to purchase the debt-laden Metro-Goldwyn-Mayer (MGM), making it one of the frontrunners in the chase.

The owner of CNN and controller of Hollywood‘s largest film library feels it can generate strong returns from MGM‘s assets through its distribution network and relationships with pay-TV channels. Time Warner has close to $5 billion in cash and equivalents.

MGM, saddled with $3.7billion in debt from a 2005 buy-out from a consortium of buyers led by Sony, initially attracted attention all across Hollywood with companies including News Corp, Liberty Media and AT&T showing their keenness to join the race. But by last Friday‘s deadline, only three remained.

MGM confirmed that it had received a number of bids and that it would review them over the next few weeks, though it has not ruled out operating as an independent company.

The studio had hoped to attract bids topping $2 billion but has drawn offers of between $1.2 to $1.5 billion, raising the possibility of MGM lenders pushing for a pre-packaged bankruptcy rather than facing a distress sale.

MGM has struggled to keep afloat as it suffered an industry wide slump in DVD sales. In spite of that, the studio‘s Bond catalogue, rights to make future Bond films and its development of a film version of The Hobbit attracted interest from potential buyers.

The bidding for MGM coincides with the auction of the Miramax library, owned by Walt Disney, and Overture, the film arm of the Liberty Media Group, in the latest round of consolidation.

Latest Reads
Box Office: A disastrous week for film exhibitors

It has been another disastrous week at the cinema halls and the wait is now on for Diwali week releases. All the releases failed to find audiences and faced the no-audience-no-show situation. The films released a week earlier were faced with the similar fate as well.

Movies Hindi
Govt says 'no mushkil' to 'Ae Dil' even as Pak industry supports Indian content ban

NEW DELHI: Although Indian is almost completely banned in Pakistan now courtesy PEMRA, in India, it became a Catch-22: give in or give up. But, ultimately Karan Johar managed to get an assurance that ‘Ae Dil hai Mushkil’ would be released as scheduled on 28 October, after the Maharashtra chief...

Movies Hindi
Sony Pictures signs three-film deal with international producers

MUMBAI: Sony Pictures International Productions (SPIP) has inked a deal with Mexico and Los Angeles-based producers Eduardo Cisneros and Jason Shuman. With this multi-picture development, the producers will write and produce three new feature films with the studio.

Movies Hollywood
31st October: Genuine effort wasted

Rather late in the day, 31stOctober is a film about the Sikh genocide of 1984 in Delhi in the aftermath of assassination of the then prime minister of India Indira Gandhi. She was killed by her security guards, who happened to be Sikh. That assassination, again, is attributed to the anger of the...

Movies Hindi
TV premiere of Daniel Craig's 'Spectre' on 23 October

Movies Now is all geared up to air the television premiere of the Daniel Craig starrer James Bond movie Spectre. With Diwali round the corner, the movie will hit the TV screens on 23 October at 1 pm and a repeat telecast at 9 pm.

Movies Hollywood
Jio MAMI: Royal Stag Barrel joins Star to promote short films

The Jio MAMI 18th Mumbai Film Festival with Star has managed to involve Royal Stag Barrel Select Large Short Films to provide a platform within the short films category.

Movies Hindi
India against obstructing Fawad film; Maharashtra assures 'protection'

Even as PEMRA's ban on Indian content looms, the Indian Government has made it clear that it will not create any impediment for the release of producer-director Karan Johar’s 'Ae Dil Hai Mushkil’ starring popular Pakistani actor Fawad Khan, among others.

Movies Hindi
'Thithi' to open Dharmashala fest; to screen 45 features and shorts

A total of 45 features and shorts are to screened at the fifth Dharamshala International Film Festival (DIFF) to be held from 3 to 6 November.

Movies Hindi
New films: The business of a few lakhs

The dull pre-Diwali period has taken its toll. The films released recently as well as last Friday have fallen like nine pins. Some of these have been forced to commit hara-kiri as they would not be able to get playtime at the cinemas in peak period when the flow of star cast films is regular. The...

Movies Hindi

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories