MGM Holdings Inc., the film studio behind the “James Bond” franchise, is investigating a sale, according to people familiar with the matter, and is betting that the library of content will appeal to companies pursuing growth in streaming video.
MGM has a close relationship with investment banks Morgan Stanley MS 5.69%
and LionTree LLC and began a formal sales process, people said. The company has a market value of about $ 5.5 billion, based on privately traded stock and including debt, some of the people said.
The studio has considered a sale on several counts in recent years, but potential suitors have previously objected to the price MGM was seeking. MGM hopes the current lawsuit will spark interest outside of traditional Hollywood players, from international media companies, private equity investors and blank check firms, said one of those familiar with the case.
MGM’s largest shareholder, New York hedge fund Anchorage Capital Group, has come under pressure in recent years from weak performance and underperforming clients, and its illiquid investment in MGM has become a larger percentage of its hedge fund as it shrinks.
MGM’s investigation of a possible sale comes amid a bidding war for content to fill a new wave of streaming video services. MGM’s library of titles could make it an attractive target, investors say.
The film studio has produced or distributed movies and TV shows, including the ‘Rocky’ franchise, ‘The Handmaid’s Tale’ and ‘Vikings’. It has struck deals to license movies from its library including ‘Silence of the Lambs’, ‘Dances with Wolves’, ‘Rain Man’ and ‘The Terminator’.
—Joe Flint contributed to this article.
Write to Benjamin Mullin at [email protected], Cara Lombardo at [email protected] and Juliet Chung at [email protected]
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