Time Warner denies offering a revised bid for MGM

30-Sep-2010 • Bond News

Time Warner Inc. has not offered a revised bid for the struggling film studio, Metro-Goldwyn-Meyer Inc., according to a spokesman - reports the WSJ.

The media giant offered $1.5 billion for the studio last spring in an auction that was ultimately unsuccessful as MGM's creditors have since sought alternatives for the debt-laden studio.

"We have not submitted a revised bid for MGM," said Time Warner spokesman Keith Cocozza, disputing a media report that the company had offered a higher bid.

Film studios have been battered by a decline in DVD sales, which has been the industry's most profitable business for years. Studios are experimenting with new forms of digital distribution, but they're facing a tough holiday season as U.S. consumers continue to suffer from a weak economy.

MGM also has held talks with Lions Gate Entertainment Inc. about a potential merger. For its part, Lions Gate is fending off a takeover bid from billionaire investor Carl Icahn, who also owns some of MGM's debt and is reportedly buying more.

Thanks to `Samuel 001` for the alert.