Metro-Goldwyn-Mayer Inc.'s famous roaring lion logo may have a new home in the near future.
In a statement Friday, the debt-riddled Hollywood movie studio said it is exploring strategic options, including a possible sale.
The privately owned company said its other options include forming strategic partnerships. Its lenders have agreed to look for outside investors for a new partnership, for an investment or for a sale of all or part of the company.
The lenders have agreed to grant MGM another respite until Jan. 31 from interest payments on its more than $3.7 billion US in debt.
Vancouver-based Lions Gate Entertainment Corp. has expressed interest in buying MGM. "It's all about price," Lions Gate vice-chairman Michael Burns said this week in New York.
According to Reuters, MGM is expected to open its books to interested parties in the next few days.
Other companies mentioned as potential buyers in recent news reports include Time Warner Inc. and Viacom Inc.
Investment bank Moelis & Co., hired by MGM in May to help refinance its debt, will oversee the potential sale process, Reuters said.
From the end of the silent film era through the Second World War, MGM was the dominant Hollywood studio.
But the company has fallen on hard times. Its latest production, a remake of the 1980 musical Fame, was panned by critics after its Sept. 25 release. The movie has made about $42 million US worldwide to date.
MGM's most valuable asset is its movie catalogue, including a 4,100-title film library and more than 10,400 episodes of television programming. In 2007, MGM made $558 million US just from its library of titles, but since then home video sales have declined across the industry.
MGM also owns the United Artists film studio, headed by Tom Cruise.
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