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Sony Acquires MGM for $5 Billion After Time Warner Withdraws Bid

Authored by Mark Hefflinger on September 13, 2004 - 4:46am.
New York -- Sony announced on Monday that it has agreed, along with partners including cable TV firm Comcast, to acquire movie studio Metro-Goldwyn-Mayer for about $5 billion. Sony and partners will pay $12 a share for MGM, and assume $2 billion in debt, sources close to the deal told Reuters. The announcement came just hours after Time Warner said that it had withdrawn its rival bid for MGM. "Although MGM is a valuable asset, we have decided to withdraw our bid," said Time Warner CEO Dick Parsons. "Unfortunately, Time Warner could not reach agreement with MGM at a price that would have represented a prudent use of our growing financial capacity." MGM holds a library of 4,000 films, including the James Bond and Rocky franchises, and also operates a movie studio with films currently in production.
http://biz.yahoo.com/rb/040913/media_mgm_sony_4.html
http://biz.yahoo.com/bw/040913/135829_1.html

tags: Sony | MGM | Bid | Time Warner | Acquires |



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