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Oct 30, 2010

MGM bankruptcy, Spyglass deal wins OK

LOS ANGELES (Reuters) – Metro-Goldwyn-Mayer creditors voted in favor of a bankruptcy plan that puts founders of Spyglass Entertainment at its helm, dealing a blow to Lions Gate Entertainment’s merger proposal, a source familiar with the situation said.

The green light for a pre-packaged bankruptcy scuppers — for now — an 11th-hour proposal backed by billionaire Carl Icahn to merge Lions Gate with MGM.

Oct 28, 2010

Lions Gate sues Icahn

LOS ANGELES (Reuters) – Lions Gate Entertainment Corp sued Carl Icahn on Thursday alleging the billionaire interfered with its earlier efforts to merge with Metro-Goldwyn-Mayer and other studios, even as the two now proceed with a joint effort to effect a merger with MGM.

In a lawsuit filed in New York federal court, Lions Gate accused Icahn, who launched a hostile bid for the studio in March, of misleading its shareholders by charging Lions Gate’s management was “imprudently pursuing merger transactions” and characterized its pursuit of MGM as a “misguided strategy” that would end in oblivion.

Oct 27, 2010

Icahn buys more MGM loans to thwart Spyglass deal

LOS ANGELES, Oct 27 (Reuters) – Billionaire Carl Icahn on
Wednesday persisted in his crusade to block a pending deal
between Metro-Goldwyn-Mayer Inc and Spyglass Entertainment
saying he had raised his stake in the studio by purchasing a
“substantial” amount of debt.

Icahn, who backs a rival proposal to merge MGM with Lions
Gate Entertainment Corp (LGF.N: Quote, Profile, Research, Stock Buzz) said on Wednesday that he had
bought senior secured loans for 50 cents per one dollar in
principal amount.

Oct 27, 2010

Blockbuster gets court OK for funding, pay studios

LOS ANGELES, Oct 27 (Reuters) – Movie rental company
Blockbuster Inc (BLOAQ.PK: Quote, Profile, Research, Stock Buzz) on Wednesday won court approval for
$125 million in financing to keep operating while in
bankruptcy, and to pay claims made by film studios.

The financing authorized by U.S. Bankruptcy Judge Burton
Lifland will allow the nation’s largest video renter to
continue paying employees and stocking its shelves with games
and DVDs while it restructures.

Oct 27, 2010

Cable, technology, media firms form digital registry

LOS ANGELES, Oct 27 (Reuters) – Major studios, cable and
technology companies on Wednesday announced the launch of an
Entertainment Identifier Registry (EIDR) to track movies, TV
shows and other assets much the way books are coded.

Likening it to the International Standard Book Numbers
(ISBNs) system used to identify books, executives involved in
the initiative said the registry was developed to make it
easier for businesses to search, track and report revenue of an
asset, cutting costs and streamlining operations.

Oct 27, 2010

DreamWorks profit surges on latest “Shrek” movie

LOS ANGELES (Reuters) – DreamWorks Animation SKG beat Wall Street profit expectations on the strength of “Shrek Forever After,” its highest-ever grossing international film release, sending the company’s shares 5 percent higher on Tuedsay.

Despite an industry-wide slump in DVD sales, the animation studio behind “Kung Fu Panda” and “Madagascar” said fourth-quarter results would be boosted primarily by home entertainment sales.

Oct 26, 2010

DreamWorks profit surges on “Shrek”

LOS ANGELES (Reuters) – DreamWorks Animation SKG Inc beat Wall Street profit expectations on the strength of “Shrek Forever After,” its highest-ever grossing international film release, sending the company’s shares 5 percent higher.

Despite an industry-wide slump in DVD sales, the animation studio behind “Kung Fu Panda” and “Madagascar” said fourth-quarter results would be boosted primarily by home entertainment sales.

Oct 26, 2010

Icahn ramps up MGM effort again

LOS ANGELES, Oct 26 (Reuters) – Billionaire investor Carl
Icahn presented another offer to lenders of Metro-Goldwyn-Mayer
on Tuesday, hoping to derail a proposed deal linking the
troubled studio with Spyglass Entertainment.

Icahn is backing a proposal to combine MGM, home to the
James Bond films, with studio Lions Gate Entertainment Corp
(LGF.N: Quote, Profile, Research, Stock Buzz). He offered to buy $1.6 billion in MGM secured loans at
a price of 53 cents per $1 principal amount.

Oct 25, 2010

MGM favors current Spyglass deal over Lions Gate

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.

Oct 25, 2010

MGM favors current Spyglass deal, contacts lenders

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.

    • About Susan

      "I cover the media sector, focusing mainly on Walt Disney Co and other big entertainment firms and the digital evolution that is currently reshaping that industry. Prior to this assignment, I covered the music industry, energy markets, commodity markets and corporate bonds. Before moving to Los Angeles in 1995, I held positions in the New York bureau and in Pittsburgh, PA."
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