Chinese company in talks to buy MGM

According to the New York Post, MGM, the independent studio behind the James Bond franchise, is in advanced talks to sell the company to a Chinese buyer, a senior source said.

MGM, which also houses the archives of President Trump’s “The Apprentice,” has been looking for a buyer or an IPO.

The firm is also a one-third owner — with Lionsgate and Paramount — of Epix, the premium movie and TV service.

The name of the China-based entity involved in the talks, perhaps newly formed to make the deal, could not immediately be learned. It is, however, the latest in a string of China investors looking for deals in Hollywood.

The film studio is owned by a slew of hedge funds including Kevin Ulrich’s Anchorage Capital Group and Highland Capital. Other investors include Daniel Loeb’s Third Point.

MGM emerged from a complex bankruptcy in 2010 whereby debtholders were able to convert their holdings into equity. The firm was loaded with $3.7 billion of debt at the time of its bankruptcy.

A deal with the Chinese entity could become complicated. Chinese nationals are having a hard time getting visas to enter the US, sources told The Post. The Beijing government is also cracking down on how much cash can leave the country.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s