Liberty Media Corp. (LINTA) has decided against making a bid for movie studio Metro-Goldwyn-Mayer, or MGM, the Bloomberg reported on Wednesday citing people familiar with the matter.
MGM's value fell below a price Liberty executives believed would be acceptable to the studio's creditors. Liberty Media was among five parties considering second-round bids for MGM. After stopping debt payments, the studio had put itself up for sale last year, setting March 19 as the deadline for formal offers.
Bloomberg also reported that based on information learnt in early February, billionaire Len Blavatnik's Access Industries, Time Warner Inc. (TWX), Lions Gate Entertainment Corp. (LGF) and producer Ryan Kavanaugh's Relativity Media, in conjunction with New York-based Elliott Management Corp were among the others exploring a second-round bid.
LINTA traded in the $14.09-$14.56 range before settling Wednesday's regular trading session at a multi-month high of $14.54, up $0.39 or 2.76% on a volume of 7.93 million shares. For the past 52-week period, the stock traded between $2.82 and $14.56, on an average volume of 4.45 million shares.
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