...MGM
Metro-Goldwyn-Mayer Studios Inc. (MGM) has filed for bankruptcy. The legendary studio and its 160 affiliates have been under debt pressure since 2005 when it was sold in a leveraged buyout for $2.85 billion. The company claims to have $2.67 billion of assets and $5.77 billion of liabilities. Last week they worked out a deal with its creditors to give them control of the company in exchange they would swap $4 billion in debt for equity. Carl Icahn has had his eye on the studio for years and is the largest debt holder in the company. He wants it to merge with Lions Gate Entertainment Corp. This news is sure to send a major ripple throug
h Hollywood. The studio produced all of the Lord of the Ring movies and is set to produce the prequel "The Hobbit". They also are responsible for all of the James Bond movies, Pink Panther, Ben-Hur and the Rocky movies as well. Carl Icahn is eyeing a hostile takeover of Lions Gate and if he wins that he will have total control over both studios, one more than the other. MGM and its famous roaring lion are safe for now though as they work out a restructuring deal, so they are still here for now, I really do doubt they will totally go away forever. This is not good news, but it is not new news and it could be much worse. However I am giving it a Digit Down because some people are going to find themselves jobless soon...
Metro-Goldwyn-Mayer Studios Inc. (MGM) has filed for bankruptcy. The legendary studio and its 160 affiliates have been under debt pressure since 2005 when it was sold in a leveraged buyout for $2.85 billion. The company claims to have $2.67 billion of assets and $5.77 billion of liabilities. Last week they worked out a deal with its creditors to give them control of the company in exchange they would swap $4 billion in debt for equity. Carl Icahn has had his eye on the studio for years and is the largest debt holder in the company. He wants it to merge with Lions Gate Entertainment Corp. This news is sure to send a major ripple throug
h Hollywood. The studio produced all of the Lord of the Ring movies and is set to produce the prequel "The Hobbit". They also are responsible for all of the James Bond movies, Pink Panther, Ben-Hur and the Rocky movies as well. Carl Icahn is eyeing a hostile takeover of Lions Gate and if he wins that he will have total control over both studios, one more than the other. MGM and its famous roaring lion are safe for now though as they work out a restructuring deal, so they are still here for now, I really do doubt they will totally go away forever. This is not good news, but it is not new news and it could be much worse. However I am giving it a Digit Down because some people are going to find themselves jobless soon...
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