Sony request a two week extension to $5 billion MGM buy-out negotiations

Sony Corp.'s film studio is seeking a two-week extension to exclusive talks in its bid to acquire Metro-Goldwyn-Mayer Inc. in a deal valued at $5 billion, a person familiar with the matter said Thursday, reports Reuters.

Sony Pictures Entertainment and partners including Texas Pacific Group and Providence Equity Partners, are considering a joint bid to acquire the famed studio with its 4,000-title film library (includine all James Bond movies) and have been locked in negotiations for around three weeks. Those exclusive talks were set to expire today.

"Sony has asked for a two-week extension, and MGM is negotiating that," the person, who asked not to be named, said.

Several other parties close to the process said the holdup in reaching an agreement has centered on the deal's structure between Sony and its partners and on ironing out final financing details.

The price, which values MGM at just over $12 per share, is not a major issue, those sources have said.

MGM shares closed Thursday off 8 cents at $11.92 on the New York Stock Exchange.

MGM declined to comment, as did Sony Pictures.

Several suitors have been reported as waiting in the wings should Sony and MGM fail to agree to terms. Time Warner Inc. and NBC Universal, a unit of General Electric Co. , are both repeatedly mentioned. Representatives for both have consistently declined to comment.

Thanks to `Scarpine` for the alert.

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