You will be redirected back to your article in seconds

MGM begins push to sell new stock

Cash raised will be used to pay debts

NEW YORK — MGM will kick off a road show this week to promote a $750 million stock offering planned for later this month or early October.

The sale of the new shares is meant to raise cash as well as to increase the studio’s shareholder base. Currently, billionaire Kirk Kerkorian owns 90% of MGM stock. If the offering is completely subscribed, and assuming a sale price of about $20 a share, his stake will fall to 72% and the public float will rise to 28% from 10%.

Kerkorian’s holding company Tracinda Corp. has agreed to take up any shares not purchased by other investors in the offering.

h to pay down debt

The cash raised will be used to pay down debt and for general corporate purposes.

The road show, where company execs meet with institutional investors and money managers across the U.S. and overseas, begins Tuesday. It was delayed from an original start date earlier this month.

Meanwhile, Wall Street sources say talks are progressing, albeit slowly, with Cablevision Systems’ Rainbow Media Group, which owns cable channels Bravo, AMC, The Independent Film Channel and others. Discussions with Rainbow are said to encompass a range of possibilities, such as Rainbow venues drawing on MGM’s library, creating a new joint venture, or, perhaps rebranding a network to include the MGM name.

MGM shares fell 4.2% Friday to $19.94.

More Biz

  • David Glasser Fired by the Weinstein

    Weinstein Co. Board Fires COO David Glasser for Cause

    NEW YORK — MGM will kick off a road show this week to promote a $750 million stock offering planned for later this month or early October. The sale of the new shares is meant to raise cash as well as to increase the studio’s shareholder base. Currently, billionaire Kirk Kerkorian owns 90% of MGM […]

  • Oh Seok-geun Korean Film Council

    New Leader Promises Reforms at Korean Film Council

    NEW YORK — MGM will kick off a road show this week to promote a $750 million stock offering planned for later this month or early October. The sale of the new shares is meant to raise cash as well as to increase the studio’s shareholder base. Currently, billionaire Kirk Kerkorian owns 90% of MGM […]

  • SOUTH KOREA OUTMandatory Credit: Photo by

    Actress Choi Hee-seo Looks Forward to a Promising Career

    NEW YORK — MGM will kick off a road show this week to promote a $750 million stock offering planned for later this month or early October. The sale of the new shares is meant to raise cash as well as to increase the studio’s shareholder base. Currently, billionaire Kirk Kerkorian owns 90% of MGM […]

  • The Prison Korean Cinema

    Korea's Box Office Faces a Drop in Admissions as Streaming Services Compete

    NEW YORK — MGM will kick off a road show this week to promote a $750 million stock offering planned for later this month or early October. The sale of the new shares is meant to raise cash as well as to increase the studio’s shareholder base. Currently, billionaire Kirk Kerkorian owns 90% of MGM […]

  • Andy Lo Hong Kong Writer Director

    Ambitious Filmmaker Andy Lo Wants Success in Both Hong Kong and China

    NEW YORK — MGM will kick off a road show this week to promote a $750 million stock offering planned for later this month or early October. The sale of the new shares is meant to raise cash as well as to increase the studio’s shareholder base. Currently, billionaire Kirk Kerkorian owns 90% of MGM […]

  • Tomorrow Is Another Day Hong Kong

    Hong Kong Films Face Challenges in Mainland China

    NEW YORK — MGM will kick off a road show this week to promote a $750 million stock offering planned for later this month or early October. The sale of the new shares is meant to raise cash as well as to increase the studio’s shareholder base. Currently, billionaire Kirk Kerkorian owns 90% of MGM […]

More From Our Brands

Access exclusive content