Liberty examine MGM
December 10, 2009
Liberty Media Corp Chief Executive Officer Greg Maffei has said the company will look at the Hollywood studio and library assets of Metro-Goldwyn-Mayer, which is considering selling itself to the highest bidder.
Maffei said the company would look at MGM for a possible transaction but said the assets are not a “must-have” for its Liberty Starz unit. MGM is struggling with nearly $4 billion in debt and has sent a prospectus to about 20 interested parties including Time Warner, News Corp, Lions Gate, and Sony.
Industry observers estimate MGM could be worth around $2.5 billion. It is owned by a group including private equity firms Providence Equity Partners and TPG and media firms Sony and Comcast. The group bought MGM for $2.85 billion and assumed $2 billion in debt as part of the purchase