You will be redirected back to your article in seconds

MGM raises $721 mil from rights offering

3.9 mil shares oversubscribed

Metro-Goldwyn-Mayer has successfully completed its stock rights offering, which generated about $721 million for the company and added 49.7 million common shares.

“The oversubscription of our rights offering underscores the financial community’s support of our vision for the new MGM,” said Alex Yemenidjian, the Lion’s chairman and CEO.

An estimated 99.3% of MGM’s shareholders exercised their rights in the offering. That rate, coupled with their oversubscription exercise, resulted in the offering being oversubscribed by nearly 3.9 million shares.

The Tracinda Group, the firm run by billionaire investor Kirk Kerkorian, remains the Lion’s largest shareholder. Tracinda bought all shares available to it in the rights offering.

As a result, Tracinda will get about 44.3 million shares, with all other shareholders getting 5.4 million. Kerkorian’s roughly 89% stake in the company will not change.

In the rights offering, stockholders of record on Oct. 15 were could buy one discounted share for every three shares they already held. The subscription price was $14.50 per share. MGM shares gained a point Tuesday to end the day at $21.50.

The rights offering brings MGM’s total common stock outstanding to about 201.3 million shares.

More Biz

  • China's Alibaba to Take Majority Control

    Alibaba to Take Majority Control of Alibaba Pictures

    Chinese e-commerce giant Alibaba is to take majority control of its films unit Alibaba Pictures. The $160 (HK$1.25 billion) deal was announced on Monday. The companies said that Alibaba will increase its stake in Hong Kong- and Singapore-listed Alibaba Pictures, through a share subscription. It will lift the parent company’s stake from 49% to 51%, [...]

  • Guy Moot

    Is Sony/ATV’s Guy Moot Headed for Top Job at Warner/Chappell?

    Ever since Jon Platt announced in September that he will be stepping down from his post at the helm of Warner/Chappell Publishing to take the top job at Sony/ATV when Martin Bandier’s contract is up at the end of March, speculation has been rife about who will take over for him. One name has been [...]

  • The King Eric Clapton A Life

    Rashida Jones, Lili Zanuck Talk Grammy Nominations and the Music-Documentary Gold Rush

    Nothing takes you back to time and a place like the music of a particular era. That’s one big reason why music documentaries are flourishing at a time of enormous demand for high-end docu productions. This year’s five Grammy Award nominees for best music film reflect the appetite for stories about renowned and beloved musical figures, [...]

  • il bussetto best business card holder

    Office-Appropriate Gifting: The Best Gifts For Your Colleagues and Bosses

    You can do better than a handshake or bottle of wine to wish your boss a Happy Holiday this season. Here are 10 gifts that show your appreciation for your colleagues or manager, while also helping you stand out from the card and cookie-wielding pack. 1. Personalized Beer Growler Whether they are using it for [...]

  • viceroy-los-cabos-review

    Winter Hotel Guide: Where The Stars Stay in Los Angeles, New York and Beyond

    Whether for a business meeting, a private event, or an intimate celebration for family and friends, these are the hotels that Hollywood keeps on its list. From storied properties that are rich in film and fashion lore, to new players on the hospitality scene, here’s where to book your next stay. 1. Hotel Shangri-La (Santa [...]

  • best tech gifts ipad apple

    Retail Analysts Reveal Top Tech Gifts of 2018

    It’s shaping up to be a busy holiday season for tech and electronics companies, as gaming consoles, streaming devices and televisions top the list of most anticipated gifts, according to retail analysts. New data from Adobe Analytics forecasts that the holiday shopping season (the period from November 1 to December 31) will see more than [...]

  • best harry potter gifts art

    Harry Potter 20th Anniversary: The Best Gifts For Harry Potter Fans

    2018 marked a big milestone for “Harry Potter,” as the franchise celebrated the 20th anniversary of “Harry Potter and the Sorcerer’s Stone” release in the U.S. Since that first book was summoned onto store shelves, the Wizarding World has become a phenomenon not just in America, but around the world, spawning a successful film franchise, [...]

More From Our Brands

Access exclusive content