Metro-Goldwyn-Mayer Inc. confirmed that a consortium comprised of Sony Corp. of America, Providence Equity Partners, Texas Pacific Group, Comcast Corp. and DLJ Merchant Banking Partners completed its acquisition of the company. With the finalization of the deal, MGM also revealed several key senior management appointments.
"Today we begin a new, exciting chapter in the life of MGM," said Dan Taylor, president of MGM. "With our strong financial and strategic partners, we look forward to building on MGM's exceptional legacy and capitalizing on emerging technologies and markets to provide consumers worldwide more opportunities to enjoy the world's largest modern library of films and television programming. We look forward to a very bright future for MGM."
Charles Cohen will serve as evp of the company. Cohen had served as evp of finance and corporate development at MGM since May 1997. Jim Packer will serve as evp of television distribution. Packer had served as evp, television distribution - North America since 2001. Blake Thomas will serve as evp of home entertainment distribution. Thomas served previously as evp of worldwide marketing since 2000. Bruce Tuchman has been appointed evp of MGM Networks. Tuchman had served as head of MGM Networks since July 2001. Travis Rutherford has been named evp of consumer products and location-based entertainment. Rutherford had served as svp of MGM's consumer products and interactive since January 2001.
Going forward, MGM expects to benefit from operating agreements with Sony Pictures Ent. (SPE) under which SPE will assume certain distribution responsibilities for MGM's library of 4,000 films and 10,400 television episodes through SPE's global distribution network, which currently distributes SPE's library of 3,500 films and 35,000 television episodes. In addition, MGM expects to co-finance new films with SPE and co-produce some of these new projects. These films will be distributed and marketed by SPE. MGM will continue to develop new original television programs and is currently completing production on the ninth season of STARGATE SG-1 and the second season of STARGATE ATLANTIS, which will both premiere this summer. Sony Pictures Television will assume production management for certain MGM television content.
In addition to the operating agreements with SPE, MGM also expects to benefit from distribution agreements with Comcast. MGM content will bavailable on Comcast's video on demand platform and on new cable channels operated by Comcast and jointly owned by Comcast, SPE and the members of the consortium.
Films currently slated for release by MGM will proceed on schedule. The company expects to release THE AMITYVILLE HORROR on April 15 and INTO THE BLUE, ROMANCE AND CIGARETTES, THE WOODS, THE PINK PANTHER and ART SCHOOL CONFIDENTIAL in the fall of this year.
MGM and the consortium announced on Sept. 23, 2004 that they had entered into an agreement related to this acquisition. The agreement was adopted by MGM shareholders on Dec. 17, 2004. In accordance with the terms of the agreement, stockholders of MGM will receive $12.00 in cash, without interest, for each MGM share held.
Metro-Goldwyn-Mayer Inc. is an independent, privately-held motion picture, television, homevideo and theatrical production and distribution company. The company owns the world's largest library of modern films, comprising approximately 4,000 titles, and more than 10,400 episodes of television programming. For more information, visit www.mgm.com.
Sony Corp. of America, based in New York City, is the U.S. subsidiary of Sony Corp., headquartered in Tokyo. Sony is a leading manufacturer of audio, video, communications and information technology products for the consumer and professional markets. Its music, motion picture, television, computer entertainment and online businesses make Sony one of the most comprehensive entertainment companies in the world. Sony's principal U.S. businesses include Sony Electronics Inc., Sony Pictures Ent., Sony Computer Ent. America Inc., and a 50% interest in Sony BMG Music Ent., one of the largest recorded music companies in the world. Sony recorded consolidated annual sales of over $72 billion for the fiscal year ended March 31, 2004, and it employs 162,000 people worldwide. Sony's consolidated sales in the U.S. for the fiscal year ended March 31, 2004 were $20.4 billion. For more information see www.sony.com.
Providence Equity Partners Inc. is one of the world's leading private investment firms specializing in equity investments in media and communications companies
Texas Pacific Group is one of the world's leading private investment firms managing more than $15 billion in assets. The firm is based in Fort Worth, Texas, and has additional offices in San Francisco and London.
Comcast Corp. is the nation's leading provider of cable, entertainment and communications products and services. With 21.5 million cable customers and 7 million high-speed Internet customers, Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content.
DLJ Merchant Banking Partners is a leading private equity investor that has a 20-year record of investing in leveraged buyouts and related transactions across a broad range of industries.
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