Lions Gate expresses an interest in buying MGM
Lions Gate Entertainment has expressed an interest in purchasing the ill-fated MGM Studio.
This news follows up yesterday’s report on CommanderBond.net that the James Bond studio home may be headed to the auction block soon. The Los Angeles Times writes that Lions Gate vice chairman Michael Burns said they would consider buying—but only if the price is right.
‘It’s all about price,” Bloomberg quoted Burns telling investors, adding, ‘We’ll know sooner rather than later’ what it’s going for. Under their current financial hardships, insiders are pegging MGM’s value at between $2 billion to $2.5 billion, a steep decline from the $5 billion that a group of investors paid for the studio several years ago.
‘Obviously, we’d look at any complimentary asset at the right price where we can leverage our infrastructure,’ Burns added.
Of particular note is MGM’s library of more than 4,000 titles, including the always lucrative 007 series as well as J.R.R. Tolkien’s The Hobbit.
MGM is currently dealing with restructering some $3.7 billion in debt. It was announced in early October that the studio had secured a forbearance agreement which exempted them from interest payments to lenders until 15 December.
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