Sony`s target of MGM buy-out is James Bond, but 007 will remain under the lion`s label

Following this week's news that Sony want to buy out MGM, analysts quoted in the New York Times have said it was a changing movie business, in which revenue from DVD sales and rentals had surpassed the box-office take, and that made the deal so tantalising for the consortium. MGM's library has thousands of old movies.

"Originally retailers were just buying the hits, but in the past 12 months, they are trying to buy entire libraries, at an accelerated pace," said Robert Routh, who follows entertainment for analysts Natexis Bleichroeder.

"They want any DVD they can get their hands on because it drives sales of other products at stores like Best Buy and Wal-Mart.

"That makes companies such as MGM with its large library - it has 4000 titles - very appealing."

Under the proposed deal, only the studio's best-known film series, like James Bond, would continue to be produced under the MGM brand.

However, talks had reached a delicate stage, executives cautioned, saying negotiations could collapse.

Thanks to `Hobo` for the alert.

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