Sahara India Pariwar in talks to buy Hollywood studio MGM
20 September 2010
Multi-business Indian conglomerate Sahara India Pariwar, whose businesses range from airlines, luxury resorts to media finance, is in talks to buy the legendry but debt-ridden Hollywood studio Metro-Goldwyn-Mayer Inc. (MGM) for $2 billion.
The Associated Press reported on 17 September, without revealing its source that the Lucknow-based Sahara Group, run by Subroto Roy, has made a $2-billion offer to buy the iconic Hollywood studio's debt.
Sahara's bid came a day after the 86 year-old studio received its seventh debt repayment extension to 29 October from a consortium of 140 creditors led by JP Morgan Chase.
The studio, which was acquired by Sony Corporation , Comcast , TPG Capital, Providence Equity Partners and other investors in 2004, has been struggling to avoid bankruptcy after it took on nearly $4 billion in debt.
Sahara's offer has come after Los Angeles-based television production company Spyglass Entertainment last week signed a letter of intent to run MGM.
MGM owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming. Its film library has one of the largest award winning collections in the world, and includes numerous successful film franchises, including James Bond, Pink Panther and Rocky.