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.
Share Tools
Top News Headlines
- Canadian housing market cools in January
- The housing resale market retreated in January following a strong December finish to 2011, according to the Canadian Real Estate Association. more »
- Immigrants the proudest Canadians, poll suggests

- Most Canadians feel immigrants are just as likely to be good Canadian citizens as people who were born here and don't object to them keeping their original citizenship, according to a recent Environics survey. more »
- Whitney Houston medical records sought
- The Los Angeles County coroner's office is seeking Whitney Houston's medical and pharmacy records as its continues the investigation into her death. more »
- NDP MPs urged to scrap gun registry in final vote
- Public Safety Minister Vic Toews is urging opposition MPs to break party ranks and side with the government during tonight's vote on scrapping the long-gun registry. more »
Latest Business Headlines
- Some Eurozone countries doubt Greek bailout will work
- There are strong doubts among some of the countries that use the euro over whether a second massive bailout can actually save Greece, officials said Wednesday, even as Athens rushed to meet tough conditions to qualify for the €130 billion ($170B US) rescue. more »
- Target to partner with Starbucks in Canada
- Minneapolis-based discount fashion retailer Target Corporation will partner with Starbucks when it opens its outlets in Canada, the retailer announced Wednesday. more »
- Canadian Tire tests new loyalty program in Nova Scotia
- Canadian Tire 'money' is going from paper to plastic as the company tests out a new loyalty program in Nova Scotia. more »
- 6 ways Greece can bounce back
- Although Greece's economic future seems dire, a number of the country's sectors show promise, according to observers. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12354.91 | 0.44 |
| DOW | 12800.55 | -77.73 |
| NASDAQ | 2926.05 | -5.78 |
| SP 500 | 1345.66 | -4.84 |
| NYSE COMPOSITE | 8009.49 | -20.12 |
| AMEX | 2422.95 | -6.11 |
| TSX-VENTURE | 1632.93 | 2.9 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Barefoot Newfoundland girl survives icy ordeal
- Immigrants the proudest Canadians, poll suggests
- Legalize pot, say former B.C. attorneys general
- Honduras prison fire kills hundreds
- Russians in abusive plane tirade to be sentenced
- NDP MPs urged to scrap gun registry in final vote
- Online privacy erosion dismays critics
- Canadian housing market cools in January
- Botox injected by unlicensed practitioners

