Metro-Goldwyn-Mayer has entered into exclusive talks with Sony about selling the last major independent film studio for about $5 billion.
Yesterday, as The Post predicted, MGM signed an agreement to deal exclusively with an investor group led by Japan’s Sony Corp. until the first week of June.
Under the terms of the exclusivity agreement, Sony and its three partners – Texas Pacific Group, Providence Equity Partners and Credit Suisse First Boston’s private equity arm – will have exclusive access to the film company’s books, people close to the situation said.
The agreement, which will expire in 15 to 20 business days, also prohibits MGM from approaching other potential bidders or providing them with any proprietary financial data.
Even with an exclusivity agreement, there is no guarantee that a MGM and Sony deal will be consummated, sources warned. “There are still a lot of moving pieces,” said one person involved in the talks.
Also, other potential suitors, including Time Warner, Viacom and General Electric’s NBC, could still re-emerge with an offer.
But if talks with Sony proceed on track, a deal could be inked before MGM’s June 29 shareholder meeting, sources said.
MGM didn’t return calls. Since news of Sony’s overture last month, other potential suitors, including Time Warner and NBC, have expressed interest in the fabled film studio. However, none so far have come forward with bids.
Shares of MGM fell 19 cents yesterday to $20.83.