LOS ANGELES (Reuters) – Indebted studio Metro-Goldwyn-Mayer favors a plan to file for bankruptcy and link up with Spyglass Entertainment, rather than a proposed merger with Lions Gate Entertainment, a source familiar with the matter said on Monday.

The source said MGM, home to the James Bond and Pink Panther films, sent a memo to lenders on Monday saying the Lions Gate proposal lacks a tremendous amount of due diligence and data to support claims of savings and cash flow.

LOS ANGELES (Reuters) – Indebted studio Metro-Goldwyn-Mayer Inc favors a plan to file for bankruptcy and link up with Spyglass Entertainment over a proposed merger with Lions Gate Entertainment Corp (LGF.N: Quote, Profile, Research, Stock Buzz), a source familiar with the matter said on Monday.

The source said MGM, home to the James Bond and Pink Panther films, sent a memo to lenders on Monday saying the Lions Gate proposal lacks a tremendous amount of due diligence and data to support claims of savings and cash flow.

NEW YORK/LOS ANGELES (Reuters) – Billionaire investor Carl Icahn stepped up his fight for control of film studio Metro-Goldwyn-Mayer Inc on Thursday, offering to buy senior debt from creditors willing to vote down the company’s proposed deal with Spyglass Entertainment.

MGM, home to the James Bond and Pink Panther films, has struggled with heavy debt after a leveraged buyout of the studio in 2005. It has labored to find a plan to fix its finances and settled earlier this month on a proposal that would include filing for bankruptcy to shed more than $4 billion in debt and then teaming up with production company Spyglass.

LOS ANGELES (Reuters) – Netflix Inc, which rose to success with its by-mail DVD rental service, may add a streaming-only service in the United States this year, as it expands its reach in the digital market.

The company also reported on Wednesday another quarter of strong subscriber growth, and its shares rose in after-hours trading.

LOS ANGELES (Reuters) – High-flying Web video and DVD rental service Netflix Inc (NFLX.O: Quote, Profile, Research, Stock Buzz) raised its customer forecast, but concerns abound over the rising costs it will have to pay studios for more movies and shows.

Shares were up more than 6 percent after Netflix said it added more customers than expected in the third quarter, owing to its online streaming service.

LOS ANGELES (Reuters) – Silicon Valley financiers got the Hollywood treatment in “Social Network,” the new film about Facebook, but the courtship between the technology and entertainment hubs has heated up with venture capital deal values in Los Angeles nearly doubling this year.

Digital and social media, video games and clean technology were the biggest attractions for venture capital activity, said Emily Mendell, vice president of strategic affairs, National Venture Capital Association (NVCA).

SAN FRANCISCO/LOS ANGELES (Reuters) – Yahoo won’t solve its midlife crisis with a fancy new deal.

Some private equity firms have explored a Yahoo (YHOO.O: Quote, Profile, Research) buyout, combining the company with AOL Inc (AOL.N: Quote, Profile, Research) or with News Corp (NWSA.O: Quote, Profile, Research) assets.

SAN FRANCISCO/LOS ANGELES (Reuters) – Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz) won’t solve its midlife crisis with a fancy new deal.

Some private equity firms have explored a Yahoo buyout, combining the company with AOL Inc (AOL.N: Quote, Profile, Research, Stock Buzz) or with News Corp (NWSA.O: Quote, Profile, Research, Stock Buzz) assets.

LOS ANGELES/NEW YORK, Oct 12 (Reuters) – Lions Gate
Entertainment Corp (LGF.N: Quote, Profile, Research, Stock Buzz) has proposed merging with
Metro-Goldwyn-Mayer in a deal valuing one of Hollywood’s oldest
movie studios at $1.6 billion to $1.8 billion, a source
familiar with Lions Gate’s strategy said.

The proposed deal by Lions Gate for the troubled studio and
home to the “James Bond” films won the backing of corporate
raider Carl Icahn, an investor in both studios, who once
compared a merger to a cash-strapped couple who decide to buy
an “overpriced” mansion.

LOS ANGELES (Reuters) – Film Studio Metro-Goldwyn-Mayer proposed a pre-packaged bankruptcy plan on Thursday that would wipe out $4 billion in debt and put the founders of Spyglass Entertainment at the helm.

MGM, which has been mired in discussions with creditors and investors to try to reduce its debt, said it had begun seeking lenders’ votes for the plan of reorganization to salvage one of Hollywood’s most legendary studios.