Iconic but troubled movie studio MGM has been on the block since last November and eventually attracted three bidders, but a second withdrawal has left only multimedia giant Time Warner at the potential buyer’s table.
According to Variety, MGM carries about $3.7B in debt, and had a baseline asking price of $2B. Bids from TW, Lionsgate and Access Industries were believed to be in the $1.5B range, according to a report in Variety.
Lionsgate dropped out in March, and Access is believed to have exited the bidding, leaving an open field for TW. The company’s CEO recently said acquiring MGM would make sense if the price is right. The studio only had one theatrical release in 2009 but holds the franchise on “James Bond” movies, half of “The Hobbit,” and owns a film library with some 4K titles.