The BBC has reported that the Time Warner media group has withdrawn its bid for movie studio Metro-Goldwyn-Mayer after it could not agree on a final price. Time Warner's bid for MGM was said to have been made up of cash and shares in the company. This move now paves the way for the only other runner in the race Sony to buy studio after it put in an offer of 5 Billion Dollars (£2.78 Billion Pounds). Sony's bid is made up entirely of cash and will also agree to take on MGM's debt.
The Deal would give Sony access to the whole range of Metro-Goldwyn-Mayer films which will certainly be a cash earner as more movies are released to the DVD format. MGM owns the rights to films such as James Bond, Wizard of OZ and many others which will be a major benefit to Sony.
| US media group Time Warner has withdrawn its bid for A deal would give Sony access to MGM's film library, a key source of cash as more movies are released on DVD. MGM classics include Ben Hur, Gone with the Wind and The Wizard of Oz; it also has the rights to James Bond. Time Warner's offer was said to be made up of cash and shares, while Sony's bid was made up of cash and assumed debt. The Japanese electronic giant's bid is backed by two private equity firms, Texas Pacific Group and Providence Equity Partners. |
Full story over at The BBC. This will help Sony expand its movie business
and rumours are also circulating that Movies could start being released on its
new handheld PSP console so with a back catalogue like that its sure to do
well.
Source: BBC
