26 August 2008 10:34 AM, PDT | From Studio Briefing - Film News | See recent Studio Briefing - Film News news
MGM Tuesday denied published speculation that it had retained Goldman Sachs to explore a possible sale. In a statement, the studio couched its denial in language that appeared to some to fortify the rumors, saying that while it had indeed retained Goldman Sachs it was doing so "to explore enhancements to MGM's long-term capital structure." At the same time, it insisted that its present owners, "are pleased with the company's current momentum and are committed to the future growth of the studio." But analysts were not so sure about the company's current ability to acquire financing for its production slate given the sluggish economy and suggested that the rumors about a possible sale will only make the studio's efforts to raise cash even more difficult. Nevertheless, other analysts pointed out that MGM -- like most other studios -- had already reduced its production schedule after going full bore earlier in the year in anticipation of a possible actors' strike.
