Sahara mulls buying MGM studio debt for $2 billion
Diversified business house Sahara India is in talks to acquire Hollywood-based film production and distribution major Metro-Goldwyn-Mayer (MGM) Inc.business Updated: Sep 19, 2010 22:46 IST
Diversified business house Sahara India is in talks to acquire Hollywood-based film production and distribution major Metro-Goldwyn-Mayer (MGM) Inc.
Though details on the Sahara-MGM deal were not available, media reports suggest that the Lucknow-based corporate major has made a bid of about $2 billion (Rs 9,300 cr) to buy the debt of the Hollywood studio.
When contacted, a Sahara spokesperson told PTI that talks are on, but it is too early to comment on the issue.
“On mutual interest, discussions are on, but it is too early to comment on the issue,” Sahara India Head of Corporate Communications Abhijit Sarkar said.
MGM, however, could not be reached for the comment. Sahara India has a presence in the finance, infrastructure and housing, media and entertainment, consumer products, manufacturing, services and trading businesses.
Metro-Goldwyn-Mayer Inc is an independent, privately-held motion picture, television, home video and theatrical production and distribution company.
MGM is owned by an investor consortium comprised of Providence Equity Partners, TPG, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group. MGM has about $4 billion in debt.
The company owns the world’s largest library of modern films, approximately 4,000 titles, and over 10,400 episodes of TV programming, as per details available on its website.
The studio is facing possible bankruptcy and several companies have shown interest in acquiring it, including the Anil Ambani Group, Spyglass Entertainment, Time Warner Inc and Lions Gate Entertainment Corp.