Sahara may buy Hollywood icon, MGM

Source :Boston/New Delhi:Financial ExpressAgencies : Monday, Sep 20, 2010 at 1051 hrs IST

Diversified business house Sahara India Pariwar is in talks to acquire Hollywood-based film production and distribution major Metro-Goldwyn-Mayer (MGM) Inc.


Though details on the Sahara-MGM deal were not available, media reports suggest that the Lucknow-based corporate major has made a bid of about USD 2 billion to buy the debt of the Hollywood studio.


When contacted, a Sahara spokesperson said that talks are on, but it is too early to comment on the issue.


"On mutual interest, discussions are on, but it is too early to comment on the issue," Sahara India Pariwar Head of Corporate Communications Abhijit Sarkar said.


MGM, however, could not be reached for the comment. Sahara India Pariwar has a presence in the finance, infrastructure and housing, media and entertainment, consumer products, 
manufacturing, services and trading businesses.


Metro-Goldwyn-Mayer Inc is an independent, privately-held motion picture, television, home video and theatrical production and distribution company.


MGM is owned by an investor consortium comprised of Providence Equity Partners, TPG, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group. MGM has about USD 4 billion in debt.


The company owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming, as per details available on its website.


Its film library has received 205 Academy Awards, one of the largest award winning collections in the world, and includes numerous successful film franchises, including James Bond, The Pink Panther and Rocky.


The studio is facing possible bankruptcy and several companies have shown an interest in acquiring it. Earlier, there were reports that the Anil Ambani Group is interested in acquiring the debt-ridden Hollywood studio.


Spyglass Entertainment, Time Warner Inc and Lions Gate Entertainment Corp are also reported to be interested in acquiring the firm.