Beverly Hills-based MGM's plans were disclosed in a brief statement explaining that it has filed a draft registration statement for an IPO with the
Although it is private, MGM has publicly disclosed its quarterly financial results for the last year as part of an agreement with its owners. The company has become profitable by slashing its costs and selling its library of more than 4,000 movies and 10,000 television episodes to overseas networks and digital distributors.
It has had mixed success so far with its cautious return to the movie business, losing money on a minority investment in
A group of hedge funds and other investors that acquired MGM's bonds over the last several years agreed in 2010 to convert that debt to equity as part of a bankruptcy plan valuing the company at about $1.9 billion. Most have no experience in the entertainment business and are believed to be eager to shed their stakes as soon as possible through an IPO.
Late 2012 may be a good time for MGM to go through with such an offering, as investors could be attracted to the high-profile releases of "Skyfall" and "The Hobbit" in November and December, respectively.
Bloomberg reported that MGM has hired investment banks J.P. Morgan and
A spokeswoman for MGM declined to comment.