MGM insists — loudly — that it’s not for sale and has plenty of money. But it does acknowledge, as both BusinessWeek and the NY Post reported, that it has hired Goldman Sachs “to explore enhancements to MGM’s long-term capital structure.” In other words: We could use some more money, actually. Do you know anyone?
It’s a tough time for any movie studio to look for financing (we still have yet to see the Dreamworks-Reliance close), let alone MGM. The studio fund-raised without success last year, even though Merrill Lynch was able to scrounge up $500 million for United Artists.
MGM: Contrary to recent media reports, Metro-Goldwyn-Mayer Studios Inc. (MGM) is not for sale. There is no “asking price” for the company. MGM’s existing financing arrangements are sufficient to meet its needs. Goldman, Sachs has been retained to explore enhancements to MGM’s long-term capital structure. All of the MGM shareholders, including Providence Equity Partners, TPG, Sony Corp. Of America and Comcast Corp, are pleased with the Company’s current momentum and are committed to the future growth of the studio.
See Also: MGM For Sale: $5 Billion
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