A consortium of companies, including Sony Corporation of America, Providence Equity Partners Inc., Texas Pacific Group and DLJ Merchant Banking Partners has reached an agreement in principle to purchase MGM for $12 cash per share and to acquire the company's debt. The total deal is valued at nearly $5 billion, with $2.94 billion in cash and $2 billion of debt. The MGM film library includes the James Bond, Pink Pantherand Rocky franchises.

The acquisition raises questions as to the future of MGM subsidiary United Artists as Sony already has their own specialty division, Sony Pictures Classics. One rumor around Hollywood has Sony collapsing MGM's production and distribution arms and simply absorbing their massive film library.

categories Cinematical