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MGM Accepts Bids, Extends Debt Deadline

Photo of Anne Thompson By Anne Thompson | Thompson on Hollywood March 22, 2010 at 11:46AM

In anticipation of a reported $1.5 billion bid by Time Warner, MGM extended the deadline for the close of bidding from Friday to Monday, reports Reuters: "Lions Gate Entertainment and billionaire Len Blavatnik's industrial holding company Access Industries have put in second-round bids for Metro-Goldwyn-Mayer, but Time Warner Inc is still considering a bid, sources told Reuters on Monday."
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Thompson on Hollywood

In anticipation of a reported $1.5 billion bid by Time Warner, MGM extended the deadline for the close of bidding from Friday to Monday, reports Reuters: "Lions Gate Entertainment and billionaire Len Blavatnik's industrial holding company Access Industries have put in second-round bids for Metro-Goldwyn-Mayer, but Time Warner Inc is still considering a bid, sources told Reuters on Monday."

According to an MGM spokesperson, the studio received a number of bids:

...as part of its ongoing process of exploring strategic alternatives, which include continuing to operate as a standalone entity and evaluating a potential sale of the Company" she stated. "The Company will review the bids and related transaction terms over the next several weeks. As part of its efforts to strengthen its financial position and to facilitate the Company’s strategic review process, MGM also said today it expects to work with its lenders to extend the current forbearance period on its bank debt, which ends March 31, 2010. The Company also expects to seek a forbearance agreement for its revolving line of credit, for which a payment is due April 8. MGM appreciates the strong support it has received from its lenders throughout this process.

Here's the the LAT, which reports that Time Warner is making a Monday afternoon all-cash offer for $1.5 billion. Saddled with $3.7 billion in debt, MGM's 150 creditors were seeking $2 billion.

This article is related to: Studios, News, MGM/UA


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Thompson on Hollywood

Born and raised in Manhattan, Anne Thompson grew up going to the Thalia and The New Yorker and wound up at grad Cinema Studies at NYU. She worked at United Artists and Film Comment before heading west as that magazine's west coast editor. She wrote for the LA Weekly, Sight and Sound, Empire, The New York Times and Entertainment Weekly before serving as West Coast Editor of Premiere. She wrote for The Washington Post, The London Observer, Wired, More, and Vanity Fair, and did staff stints at The Hollywood Reporter and Variety. She eventually took her blog Thompson on Hollywood to Indiewire. She taught film criticism at USC Critical Studies, and continues to host the fall semester of “Sneak Previews” for UCLA Extension.