MGM Sells Off Stock to Finance Cable Stakes
- Share via
WASHINGTON — Kirk Kerkorian, who controls Metro-Goldwyn-Mayer Inc., has agreed to buy $325 million in preferred shares of the film studio to help fund its purchase of stakes in four cable channels owned by a unit of Cablevision Systems Inc., regulatory documents showed.
MGM agreed last week to acquire a 20% interest in Rainbow Media’s cable channels Bravo, Independent Film Channel, American Movie Classics network and WE: Women’s Entertainment for $825 million.
Besides the sale to Kerkorian, MGM said it also will sell about 10.66 million shares of common stock to institutions and other investors in hopes of raising $220.5 million, according to documents filed with the Securities and Exchange Commission on Tuesday.
Shares of the Santa Monica-based MGM were down 32 cents at $20.19 in Wednesday’s New York Stock Exchange trading.
The biggest entertainment stories
Get our big stories about Hollywood, film, television, music, arts, culture and more right in your inbox as soon as they publish.
You may occasionally receive promotional content from the Los Angeles Times.
