MUMBAI: With a non-binding offer expected soon from Fox, seven companies have
placed offers to buy MGM in the first round bidding exercise.
Bros., Lionsgate and Elliott Management -- an investor in producer Relativity
Media -- were among those who made first-round offers. It will be learnt next
week if they have made it into a second round or not.
first-round offers, part of a solicitation process launched last month by MGM
consultant Moelis & Co., fell short of the $2 billion target for selling the
Lion. But with those holding $3.7 billion in MGM debt pressing for a change in
ownership, a lesser sum might work out things.
offers were allowed only on the entire studio. It's unclear if a la carte bidding
on select MGM assets or on film rights to the James Bond franchise would be allowed
in the next round.
is considered likely to file a second-round bid for the entire company. So far,
the mini-major has offered $1.5 billion to buy the studio, it is learnt.
of the first-round offers was well detailed, hence the debt holders will be anxious
to get a better sense of the seriousness of those bidders.
owners include Providence Equity, TPG Capital, Sony, Comcast, DLJ Merchant and
Quadrangle.Companies reviewing MGM financial data have included Fox, Warner Bros.,
Lionsgate, Liberty Media, AT&T, Summit Entertainment, Reliance Big Entertainment