By Staff, May 21, 2004
Electronics giant Sony Corp. revealed it is in exclusive talks to buy Metro-Goldwyn-Mayer Inc. and its fabled film studio, according to The Wall Street Journal. Earlier this month, a Sony-led bidding group was granted an exclusive negotiation period to discuss buying MGM.
Sony hopes the synergy of combining electronics with movies, music and other entertainment will create a new multi-media force for the company
. MGM has had few blockbusters in recent years but possesses a much coveted library of old movies and TV shows, including the "Pink Panther," "Rocky" and "James Bond" franchises.
MGM is believed to be seeking $5 billion, including the assumption of $2 billion of debt. For nearly two years, MGM has been seeking to become larger through an acquisition or merger. The company, which is 74% owned by billionaire Kirk Kerkorian, made an unsuccessful bid for Universal Studios last year.
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