Monday, September 27, 2021

THE (STUDIO) LIONS SPEAK TONIGHT

July 14, 2010 by · Leave a Comment 

The mating dance of Hollywood’s two lions, Lions Gate Entertainment and MGM, the home of Leo the Lion, has resumed. According to Bloomberg News, Lions Gate Vice Chairman Michael Burns has been meeting with some of the investors who hold part of MGM’s $3.7-billion debt. The wire service said that the recent truce between Lions Gate’s board and billionaire investor Carl Icahn, who now holds 38 percent of the company, was aimed at allowing Burns to negotiate freely with the MGM debt holders. Icahn has previously expressed concern that Lions Gate executives might be willing to overpay for MGM, whose principal value lies in its library, which is dwindling in value given the rise of cheap DVD rentals, piracy, and increased entertainment choices. As Lions Gate’s principal stockholder, Icahn would have to approve any merger with MGM.