According to Wall Street Journal it's a deal.
April 28, 1997
Metromedia to Sell Film Assets
To MGM for $573 Million
An INTERACTIVE EDITION News Roundup
Metromedia International Group Inc., moving to
increase its focus on its telecommunications business,
agreed to sell some of its entertainment assets to
Metro-Goldwyn-Mayer Inc. for $573 million.
Metro-Goldwyn-Mayer, the Hollywood studio acquired
last year by a group including billionaire investor Kirk
Kerkorian, will acquire Metromedia's film and television
library, consisting of approximately 2,200 titles, and the
production and distribution activities of its Entertainment
Group. The group includes the operations of Orion
Pictures Corp., Goldwyn Entertainment Co. and Motion
Picture Corp. of America. In addition to the library,
MGM will acquire 12 completed films and five
direct-to-video features for future release.
The Metromedia library includes such films as "Dances
with Wolves" and "Silence of the Lambs."
Not included in the deal is Metromedia's Landmark
Theatre group, which has a total of 138 screens at 50
locations in the U.S.
John W. Kluge, chairman of East Rutherford, N.J.,
Metromedia, said the deal would help the company
expand its telecommunications business, which is
creating systems in Eastern Europe, Russia and China.
The company's communications group operates wireless
cable television systems, paging systems, an international
toll call service and radio stations. The company also
owns Snapper, a lawn-care equipment maker.
MGM said the transaction would give it the largest film
library in the world, with more than 3,600 titles.
The deal is expected to close this summer.
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