MGM Going Up for Sale Soon?

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In early October, MGM announced that it would not be facing bankruptcy, but now Variety is reporting that the studio may be auctioned off within the next few weeks.

It would mean that a major studio could buy the MGM-UA library while another entity might acquire the logo, and yet another deal could be made for United Artists.

The various equity owners of MGM, including several private equity firms, have already written down their $5 billion acquisition, which closed in 2004.

Any sort of auction would need approval of a two-thirds majority of the bondholders, and a couple of the bondholders insist they have not been contacted as yet, says the trade, which adds that a pre-packaged bankruptcy is still an option.