MGM Holdings Inc., the film studio behind the “James Bond” franchise, is exploring a sale, according to people familiar with the matter, betting that its content library will prove attractive to companies looking to grow in video streaming.
MGM, which is closely owned, operated Morgan Stanley MS investment banks 5.69%
and LionTree LLC and began a formal sale process, people said. The company has a market value of about $ 5.5 billion, based on privately traded shares and including debt, some people said.
The studio has been considering a sale at various points in recent years, but potential contenders have previously opposed the price MGM was looking for. MGM hopes the current process will generate interest beyond traditional Hollywood players, from international media companies, private equity investors and unverified companies, said one person familiar with the matter.
MGM’s largest shareholder, New York Anchorage Capital Group’s hedge fund, has come under pressure in recent years due to poor performance and customer failure, and its illiquid investment in MGM has become a higher percentage of its investment fund. hedging as it shrinks.
MGM’s exploration of a possible sale comes amid a bidding war for content to fill a new wave of video streaming services. The MGM securities library could make it an attractive target, say its investors.
The film studio has produced or distributed films and TV shows, including the “Rocky”, “The Handmaid’s Tale” and “Vikings” franchises. He has arranged for the licensing of films in his library, including “Silence of the Lambs,” “Dancing with the Wolves,” “The Rainman,” and “The Terminator.”
—Joe Flint contributed to this article.
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