SONY SEALS DEAL FOR MGM STUDIO WILL STILL MAKE MOVIES WITH FAMED NAME.Byline: Greg Hernandez Staff Writer The 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. lion will continue to roar - sort of. Under a definitive agreement reached Thursday by Metro-Goldwyn-Mayer Inc. and a consortium led by Sony Corporation of America Sony Corporation of America (SCA) is the United States subsidiary of Japan's Sony Corporation. It is based in Inglewood, California. It is the umbrella company under which all Sony companies operate in the United States. Subsidiaries
Following the expected close of the deal in mid-2005, Sony Pictures Entertainment will co-finance and produce new movies with MGM in addition to distributing MGM's existing movies and television content through Sony's global distribution channels. ``This is a compelling strategic transaction that will give MGM the ideal partners to build on its unique legacy,'' said Alex Yemenidjian, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of MGM. ``This transaction will deliver the full value of MGM to our shareholders, while creating significant value-creation opportunities for the new owners and expanded options for consumers to enjoy MGM's content.'' The consortium, which also includes Comcast Corp., Providence Equity Partners Providence Equity Partners is a private equity firm headquartered in Providence, Rhode Island that focuses on investments in media and telecommunications. It is one of the largest private investment firms specializing in equity investments in media and communications companies. , Texas Pacific Group and DLJ Merchant Banking Partners DLJ Merchant Banking Partners (DLJMB) is a LBO-focused private equity firm of Credit Suisse. DLJMB has offices in New York, London and Los Angeles. External links
The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . Until the deal closes, it will be somewhat business as usual for the one-time legendary studio, with MGM continuing to produce movie and television content. The studio will also keep on greenlighting projects under the MGM and United Artists banners until finalization of the merger. All parties said Thursday that the deal is an opportunity to enhance the value of MGM's film library of more than 4,000 titles including the James Bond, Pink Panther and Rocky franchises, through the distribution capabilities of both Sony and Comcast. Comcast had unsuccessfully tried to buy The Walt Disney Co. earlier this year, mainly to obtain that company's expansive content for its distribution channels. ``This is a terrific partnership,'' said Comcast Chairman and Chief Executive Officer Brian L. Roberts Brian L. Roberts is Chairman and CEO of Comcast Corporation, an American company providing cable, entertainment and communications products and services. He is the son of Comcast co-founder Ralph J. Roberts. . ``We are delighted to be working with Sony and the other partners to substantially expand the content available to our customers, and our direct investment further underscores our excitement over this opportunity.'' The deal has been approved by MGM's board of directors and now must be approved by MGM shareholders. Employees of MGM and its subsidiaries will have the chance to be considered for available positions, the company said. Greg Hernandez, (818) 713-3758 greg.hernandez(at)dailynews.com |
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