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Sony seals deal

Friday, Sept. 24, 2004 | 9:23 a.m.

LOS ANGELES -- Under a definitive agreement reached Thursday by Metro-Goldwyn-Mayer Inc. and a consortium led by Sony Corporation of America, MGM will continue to operate as a private movie-making company headquartered in Los Angeles and under the same legendary name.

Following the expected close of the deal in mid-2005, Sony Pictures Entertainment will co-finance and produce new movies with MGM in addition to distributing MGM's existing movies and television content through Sony's global distribution channels.

"This is a compelling strategic transaction that will give MGM the ideal partners to build on its unique legacy," said Alex Yemenidjian, chairman and CEO of MGM.

The consortium, which also includes Comcast Corp., Providence Equity Partners, Texas Pacific Group and DLJ Merchant Banking Partners, will acquire MGM for $12 a share in cash, assume roughly $2 billion of MGM debt and commit $1.6 billion in equity financing.

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