MGM Taps Two Investment Banks To Explore Sale – Report

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MGM has tapped two investment banks and started a formal sale process, looking to generate heat from Hollywood studios, international conglomerates, private equity firms and the growing multitude o…

MGM declined to comment.

SPACS, special purpose acquisition vehicles, are empty shells put together by bankers and industry experts that raise cash, go public and then merge with private companies — which then become public without having to go through a traditional IPO process. A few SPACS recently have said they are targeting media and entertainment for acquisitions.

The WSJ said the studio has hired Morgan Stanley and LionTree to explore a sale, and that it has a market value of around $5.5 billion, based on privately traded shares and including debt. It has about $2.3 billion in long-term debt. MGM several years ago held exploratory talks with Apple, about a range of scenarios, from a streaming output deal to a full acquisition. More recently, it talked with the tech giant and other streamers about a one-year license to the latest Bond film,

 

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