MGM Likely to Draw Bids as Deadline Looms

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A week before a Jan. 15 deadline on offers to buy MGM, two things are clear: The Lion will attract some bids, but debt holders will need to OK another extension on scheduled debt payments beyond Jan. 31.

More than a dozen suitors have signed confidentiality agreements and are culling through financial information about the studio in an online “data room” set up by MGM consultant Moelis & Co. Those include other studios such as Warner Bros. and Lionsgate and nontraditional entertainment players including AT&T and hedge fund Elliott Management.

Elliott had to pledge that its interest is unrelated to the firm’s stake in Hollywood producer Relativity Media. Strict confidentiality terms prohibit suitors from sharing data with other companies, a provision prompting Fox to refuse to participate in the MGM due diligence.

• Read the full Hollywood Reporter story.

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