MGM SELLING STAKE IN THREE CHANNELS.Byline: Greg Hernandez Staff Writer SANTA MONICA Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. - Metro-Goldwyn-Mayer Inc. officials announced Monday that MGM MGM in full Metro-Goldwyn-Mayer, Inc. U.S. corporation and film studio. It was formed when the film distributor Marcus Loew, who bought Metro Pictures in 1920, merged it with the Goldwyn production company in 1924 and with Louis B. Mayer Pictures in 1925. is selling its 20 percent financial interest in three cable channels for $500 million. The deal was struck with New York-based Cablevision Systems Corp., which is buying back the stake in the American Family American Family is a photographic artwork exhibition by Renée Cox. See also
The move could help both MGM and Cablevision in their rival bids to buy Vivendi Universal's U.S. entertainment assets. It gives MGM more cash for their Vivendi bid, while Cablevision would own a 100 percent stake in the cable channels. ``It's a win-win for both MGM and Cablevision,'' said Robert Routh, a New York-based analyst for Natexis Bleichroeder. ``It's a great deal that puts MGM in a debt-free position in any expected pursuits of another entity. They have unlimited flexibility as a result of this transaction.'' The highly coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. assets of Vivendi Universal Entertainment include the Universal film studios, theme parks, and the USA and SciFi cable channels. The MGM-Cablevision transaction is expected to close during the third quarter. MGM will receive $250 million at the closing and another $250 million five months later. MGM expects to report a book loss associated with the transaction of approximately $93 million in its second quarter that ended Monday. ``We are turning an asset for which the financial community gave us little credit into over $2 per share in cash,'' Alex Yemenidjian Alex Yemenidjian was the former CEO of MGM Studios. He was appointed as CEO by Kirk Kerkorian, as it is known that Yemenidjian was a close friend of the casino tycoon. Yemenidjian is of Armenian origin born in Argentina. Refferance
MGM bought the minority stakes in the three channels plus the Bravo BRAVO Cardiology A clinical trial–Blockade of the GP IIB/IIIA Receptor to Avoid Vascular Occlusion– which evaluated lotrafiban in preventing strokes and acute MI. See GP IIB/IIIA. cable channel from Cablevision two years ago for $825 million. The studio later sold its 20 percent interest in Bravo to NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. for $250 million. Greg Hernandez, (818) 713-3758 greg.hernandez(at)dailynews.com |
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