Sony complications point to Time Warner getting MGM?

Variety reports that it is looking more and more likely that Time Warner, which owns Warner Bros. Pictures and New Line Cinema, will swoop in and purchase MGM, after Sony was unable to construct a final offer for the company, reports ComingSoon.

As well as James Bond, buying MGM would give Time Warner a nice little bonus - worldwide theatrical and television rights to J.R.R. Tolkien's The Hobbit. New Line, which has released "The Lord of the Rings" trilogy, would be able to pursue the film after all, if things work out.

Apparently the Time Warner deal is cleaner (one buyer offering Time Warner stock) and more tax-efficient. Sony has said that there were "some complications" and that "it's up to MGM management now."

Variety has learned, however, that the holdup actually isn't on the MGM side at all, but still resides at Sony. Sony and its two equity partners, Texas Pacific and Providence Equity, are struggling to get onto the same page.

Thanks to `Goldeneye` for the alert.

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