November 24 : 2009
MGM lining up bidders for its assets
MGM has begun the process of sending out non-disclosure agreements to companies interested in bidding on its assets. The studio is setting up a secure online site where bidders can access its internal financial data.
Assets up for sale, apparently as a group, include, according to Variety, “the 4,000 title library, the logo, the United Artists operations, rights to the James Bond and Pink Panther franchises and half-ownership in the upcoming ‘Hobbit’ films.” The base price is said to be $1.5 billion, while Variety’s sources say the bidding will probably not top $2.5 billion.
Time Warner is considered to be the frontrunner. It has around $9 billion in cash on hand as a result of having recently spun off its cable systems. Rupert Murdoch’s News Corp. and the distribution company Lionsgate are also possible bidders.
The story concludes, “For the time being, current MGM leadership will stay in place and production chief Mary Parent will continue to shepherd a small production and development slate. It remains co-financier with New Line on ‘The Hobbit,’ set to go into production around spring in New Zealand with two films shot back-to-back with Guillermo del Toro.



