MGM Sells Off Stock to Finance Cable Stakes
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.
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