If true, it puts Carl Icahn on the Hollywood sidelines after selling stakes in Blockbuster before it went into bankruptcy and most recently Lionsgate, in which he sold his 33% stake after he tried and failed to merge it with MGM. The latest move makes sense for MGM, which last week filed a draft IPO statement and hired JPMorgan Chase and Goldman Sachs to manage the offering. It suggests that MGM has come a long way from when it emerged from bankruptcy in 2010. An insider tells Deadline about the Icahn move, which separates MGM from what Bloomberg says is its largest shareholder: “It shows that MGM is very serious about their IPO. A public offering is hard to do when Icahn is in your stock, because he keeps investors sitting on the sidelines.” According to a confidential letter obtained by the LA Times, MGM is paying Icahn $33.50 for each of his 17.6 million shares, so his approximate 25% stake sells back to MGM for $590 million – though the paper did not know if that made him a profit. MGM could be ramping up for its IPO by year’s end as two of its major film properties hit the big screen: the James Bond pic Skyfall on November 9 and the first installment of Peter Jackson’s The Hobbit on December 14.


Wait…, wait.., wait…, I read this part of the article and I nearly fell off my chair.
“…,so his approximate 25% stake sells back to MGM for $590 million.”
So are you telling me that MGM value themselves at nearly $2.4 BILLION????????
I’m speechless. Truly I am.
Looking at Sony’s current (woeful) market cap I could go out and buy the WHOLE Sony Pictures operation (film, TV, everything) for that and still have some change left over.
At this point MGM is teetering on switching from a film production company to an elaborate ponzi scheme.
Beware investors…, BEWARE!