MGM watch: Lions Gate offers to combine operations with MGM

The Associated Press IN A STORY YOU CAN VIEW BY CLICKING HERE reports that Lions Gate Entertainment is offering to combine its operations with Metro-Goldwyn-Mayer Inc. Here’s how the story starts:

NEW YORK — Lions Gate is offering to combine its business with MGM in a deal supported by billionaire investor Carl Icahn, who owns stakes in both studios.

Lions Gate Entertainment Corp. said Tuesday it has sent a proposal for a combination with financially troubled Metro-Goldwyn-Mayer Studios Inc.

Lions Gate said the combined company would be owned by its shareholders and by MGM’s creditors. These include Icahn.

Terms weren’t disclosed, though a report in the Los Angeles Times said the deal would give MGM’s lenders a 55 percent in the combined company. Lions Gate and MGM declined to comment.

Spyglass Entertainment on Oct. 7 began seeking support from MGM creditors for a plan where Spyglass’s top executives would take command of MGM after a “pre-packaged” bankruptcy. MGM’s secured creditors (meaning they have some sort of collateral) have until Oct. 22 to weigh in on that proposal.

For 007 fans, more fun, more complications. Remember the line in 1971’s Diamonds Are Forever where Willard Whyte played Monopoly “with real buildings”? 007’s fate depends on people like that.

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