Lionsgate is pulling out of the bidding battle over the purchase of MGM, according to THE HOLLYWOOD REPORTER.
Lionsgate is pulling out of the bidding battle over the purchase of MGM, according to THE HOLLYWOOD REPORTER. The company’s offer was between $1.3-1.4 billion, but was not enough to beat out the bids of Time Warner and Leonard Blavatnik’s Access Industries.
Access Industries has been buying up media concerns of late. It holds part of the U.K. arm of Mel Gibson's Icon Group, Warner Music Group, Russian TV company Amedia, Israeli TV company R.G.E. Group and the U.K.'s Top Up TV.
Also in the mix is News Corp, which has offered $250 million to take a share in MGM.
MGM’s creditors fall onto two sides on what to do with the company. One side wants to take the highest bid and run, while the other wants to raise as much cash it can to keep the studio independent.
The departure of Lionsgate will make its shareholder Carl Icahn very happy. He objected to the move. This dislike of Lionsgate’s spending led him to recently make a hostile bid to take over the company.