Sony Agrees To Buy MGM

KingFishKingFish
edited September 2004 in Science & Tech
A group headed by Sony Corp. agreed in principle on Monday to buy Hollywood film studio Metro-Goldwyn-Mayer for nearly $5 billion, sources close to the deal said.
Comcast, the biggest U.S. cable operator, is considering plans to contribute about $300 million to the venture, the sources also said. The deal came after rival bidder Time Warner withdrew from the auction, saying it could not reach agreement on price. Sony and its partners, who have pursued MGM since early this year, will pay $12 a share and assume slightly less than $2 billion in debt as part of the agreement, the sources said. MGM's library of more than 4,000 films, including the James Bond, Pink Panther and Rocky movies, is considered its crown jewel--one that could generate a solid stream of revenue if Sony reformats the films for sale in the hot DVD market.
Source: c|net
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