Tuesday, September 14, 2004
Sony To Buy MGM In 5 Billion Dollar Deal
Posted by Kent Pribbernow in "NEWS" @ 08:00 AM
"A group headed by Sony Corp. agreed in principle on Monday to buy Hollywood film studio Metro-Goldwyn-Mayer for nearly $5 billion, sources close to the deal said. Comcast, the biggest U.S. cable operator, is considering plans to contribute about $300 million to the venture, the sources also said. The deal came after rival bidder Time Warner withdrew from the auction, saying it could not reach agreement on price. Sony and its partners, who have pursued MGM since early this year, will pay $12 a share and assume slightly less than $2 billion in debt as part of the agreement, the sources said."
More consolidation in the entertainment industry. It's rather sad to see so many mergers and acquisitions. In the end only a handful of media giants will control the industry, which will most certainly stifle innovation. Sony stands to gain much from this deal, as it already controls several other key players in the business, such as the former Columbia Pictures.
It's all about the money. To quote a line from the movie The Right Stuff..."No bucks...no Buck Rogers"
More consolidation in the entertainment industry. It's rather sad to see so many mergers and acquisitions. In the end only a handful of media giants will control the industry, which will most certainly stifle innovation. Sony stands to gain much from this deal, as it already controls several other key players in the business, such as the former Columbia Pictures.
It's all about the money. To quote a line from the movie The Right Stuff..."No bucks...no Buck Rogers"
