NEW YORK (Kyodo) A group of investors led by Sony Corp. said Thursday it has finalized a $4.9 billion acquisition deal with Hollywood film studio Metro-Goldwyn-Mayer Inc.

The deal, which will be completed in mid-2005, calls for Sony Corp. of America and its consortium allies — Providence Equity Partners Inc., Texas Pacific Group and DLJ Merchant Banking Partners — to pay $12 in cash per MGM share while assuming the company’s debt of some $2 billion, the group said.

Initial investment by Sony will be $300 million, it said.

On Sept. 13, the Sony-led group outbid American media giant Time Warner Inc. in the auction for MGM.

Sony reportedly plans to absorb the once-powerful film and TV studio into its Sony Pictures Entertainment division.

Sony Pictures Entertainment Inc. was established after Sony purchased Columbia Pictures Entertainment Inc. in 1989.

With the latest deal, Sony will own two major Hollywood studios, along with worldwide distribution rights to MGM products, which include the James Bond series and countless classics.

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