By M&C News Apr 9, 2005, 9:24 GMT
Metro-Goldwyn-Mayer Inc. announced today that a consortium comprised of Sony Corporation of America, Providence Equity Partners, Texas Pacific Group, Comcast Corporation and DLJ Merchant Banking Partners completed its acquisition of the Company. This transaction establishes MGM as one of the world's largest privately held, independent motion picture, television and home video companies.
"Today we begin a new, exciting chapter in the life of MGM," said Dan Taylor, President of MGM. "With our strong financial and strategic partners, we look forward to building on MGM's exceptional legacy and capitalizing on emerging technologies and markets to provide consumers worldwide more opportunities to enjoy the world's largest modern library of films and television programming. We look forward to a very bright future for MGM."
MGM also announced today several key senior management appointments. Charles Cohen will serve as Executive Vice President of the Company. Mr. Cohen had served as Executive Vice President of Finance and Corporate Development at MGM since May 1997. Jim Packer will serve as Executive Vice President of Television Distribution. Mr. Packer had served as Executive Vice President, Television Distribution - North America since 2001.
Blake Thomas will serve as Executive Vice President of Home Entertainment Distribution. Mr. Thomas served previously as Executive Vice President of Worldwide Marketing since 2000. Bruce Tuchman has been appointed Executive Vice President of MGM Networks. Mr. Tuchman had served as head of MGM Networks since July 2001. Travis Rutherford has been named Executive Vice President of Consumer Products and Location-Based Entertainment. Mr. Rutherford had served as Senior Vice President of MGM's Consumer Products and Interactive since January 2001.
Going forward, MGM expects to benefit from operating agreements with Sony Pictures Entertainment (SPE) under which SPE will assume certain distribution responsibilities for MGM's library of 4,000 films and 10,400 television episodes through SPE's global distribution network, which currently distributes SPE's library of 3,500 films and 35,000 television episodes. In addition, MGM expects to co-finance new films with SPE and co-produce some of these new projects. These films will be distributed and marketed by SPE. MGM will continue to develop new original television programs and is currently completing production on the ninth season of "Stargate SG-1" and the second season of "Stargate Atlantis," which will both premiere this summer. Sony Pictures Television will assume production management for certain MGM television content.
In addition to the operating agreements with SPE, MGM also expects to benefit from distribution agreements with Comcast. MGM content will be available on Comcast's video on demand platform and on new cable channels operated by Comcast and jointly owned by Comcast, SPE and the members of the consortium.
Films currently slated for release by MGM will proceed on schedule. The Company expects to release "The Amityville Horror" on April 15 and "Into the Blue," "Romance and Cigarettes," "The Woods," "The Pink Panther" and "Art School Confidential" in the fall of this year.
MGM and the consortium announced on September 23, 2004 that they had entered into an agreement related to this acquisition. The agreement was adopted by MGM shareholders on December 17, 2004. In accordance with the terms of the agreement, stockholders of MGM will receive $12.00 in cash, without interest, for each MGM share held.
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