Liberty Media says it will look at MGM assets

Liberty Media Corp Chief Executive Officer Greg Maffei said on Tuesday that his company will look at the Hollywood studio and library assets of Metro-Goldwyn-Mayer, which is considering selling itself to the highest bidder.

Maffei said the company would look at MGM for a possible transaction but said the assets are not a "must-have" for its Liberty Starz unit. He was speaking at a UBS Media investor conference in New York.

His comments initially appeared to contradict Liberty Media Chairman John Malone who told reporters last month that it was "highly unlikely" Liberty would make an offer to buy the company. But Malone also said: "Depending on where the debt trades we may be interested in the its debt."

MGM is struggling with nearly $4 billion in debt and has sent confidentiality agreements to about 20 interested parties including Time Warner Inc, News Corp, Lions Gate Entertainment Corp and Sony Corp.

Industry watchers estimate MGM could be worth around $2.5 billion, assuming the company produces a movie from its famed James Bond franchise every year.

MGM is owned by a group including private equity firms Providence Equity Partners and TPG, and media firms Sony and Comcast Corp. The group bought MGM for $2.85 billion and assumed $2 billion in debt as part of the purchase.


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