MGM to co-produce with Sony after takeover

MGM, the beleaguered Hollywood studio currently being acquired by a consortium of buyers led by Sony Pictures, will continue to co-produce movies as a private company once the takeover is complete - reports the Guardian (UK).

The legendary studio behind the James Bond and Pink Panther franchises will co-produce and co-finance movies with Sony, with the latter serving as worldwide distributor, according to reports.

Sony and its investor group partners Providence Equity Partners, Texas Pacific Group, Comcast Corporation and DLJ Merchant Banking Partners issued a statement with MGM yesterday in which it said it agreed to buy the studio for $12 (£6.67) per share and assumed approximately $2bn (£1.1bn) in debt.

The involvement of Comcast paves the way for potentially lucrative ancillary deals, and it is understood the cable operator will operate a video-on-demand platform using Sony and MGM content, and launch exclusive new channels.

Thanks to `JP` for the alert.

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