The possible sale of MGM — one of Hollywood’s longest-running dramas — will come into focus in the next few weeks when the first bids are expected to be submitted. The Lion, which put itself up for sale Nov. 13, has received several non-disclosure agreements back from potential bidders, a source close to the process indicated. It sent out over 20 NDAs last month out as a prelude to bidders seeing MGM’s internal books.
It’s not a given that MGM will be sold. The beleaguered studio has left open the door to continue operating as a standalone entity or forming some kind of strategic partnership if MGM’s 140 debtholders agree to do so, possibly through a prepackaged bankruptcy. The bondholders have agreed to hold off receiving interest payments until Jan. 31 in order to enable management to find out the actual value of the assets and whether it should proceed with a formal auction. More..