Metro-Goldwyn-Mayer Studios Inc. emphasized in late August that it was not for sale, and all signs seem to indicate that the movie studio is not changing its mind, despite a Tuesday New York Post report stating Reliance ADA Group has renewed talks
over a potential buyout or equity investment in MGM.
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The report says that discussions between Reliance and MGM are in preliminary stages while the target's owners "won't sell out or bring in additional equity at anything
less than the $5 billion total they paid for the studio in 2004."
But the general feeling of getting a deal done is skeptical at best. An industry insider told TheDeal, "That MGM is for sale is ridiculous. There's no credit out there. There's no money for anybody to do anything." Additionally, Reliance just closed the deal for DreamWorks SKG on Sept. 19 and is still working on assimilating its acquisition. Another thorn in MGM's side that could hold up any deal is its $3.7 billion in debt, consisting of a term loan that isn't due until 2012. - Gerald Magpily and Richard Morgan
See New York Post article
See Dealscape: MGM: There is no "asking price" for the company
