MGM Holdings
 |
|
| Private corporation | |
| Traded as | NASDAQ: MGMB |
| Industry |
Entertainment Mass media |
| Founded | February 11, 2005 |
| Headquarters | Beverly Hills, California, United States |
|
Key people
|
Gary Barber (Chairman and CEO) |
| Products |
Motion pictures Television programs |
| Revenue |
 US$ 1.558 billion (2015) |
|
US$ 259 million (2015) |
|
|
US$ 252 million (2015) |
|
| Total assets |
US$ 3.045 billion (2015) |
| Owner |
Highland Capital Management Anchorage Capital Group Third Point Management Solus Alternative Asset Management |
| Divisions | Metro-Goldwyn-Mayer |
| Website | www |
MGM Holdings, Inc. is a Delaware-registered pure holding company and the parent company of the American media company Metro-Goldwyn-Mayer Studios Inc.. Through this holding company, MGM's creditors own the studio. Its headquarters are in Beverly Hills, California, United States.
MGM Holdings was formed on February 11, 2005 by a Sony-led consortium and on April 8, 2005, it acquired MGM in a US$4.8 billion leveraged buyout. From that period until its emergence from bankruptcy on December 20, 2010, MGM Holdings was owned by Providence Equity Partners (29%), TPG Capital (formerly Texas Pacific Group) (21%), Sony Corporation of America (20%), Comcast (20%), DLJ Merchant Banking Partners (7%), and Quadrangle Group (3%).
After being installed in August 2009 as MGM's new CEO, Stephen Cooper tried to convince MGM's lenders that they should restructure the company's long-term debt in order to allow the studio to continue with its current business model. The lenders refused to do so and argued that a sale was the only way to recoup their investment. Cooper agreed to conduct an auction to gauge the level of interest by potential buyers and the value of the assets for sale.
On November 12, 2009, MGM announced it was "beginning a process to explore various strategic alternatives including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the company." Alternatives the company was exploring included the sale of the company or merger with another media firm, or an asset auction, which could have included the sale of its 4,000-title film and television library, the company logo, rights to the James Bond franchise, and half-ownership in the three Hobbit films. The studio also held out the possibility of gaining a large influx of cash from new investors, although industry analysts believed that alternative was unlikely to happen. Some industry analysts said sale of the studio could net $1.5 billion to $3 billion. Others pegged the value at between $2 billion to $2.5 billion. Potential buyers included Time Warner (which already owned the pre-May 1986 MGM library, had enough cash reserves, and co-produced the Hobbit films with MGM), Qualia Capital (a private equity fund led by Hollywood producer Amir Malin), 20th Century Fox (MGM's home entertainment distributor), and Lionsgate.
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Wikipedia