To: dwight martin who wrote (2186 ) 4/18/1999 12:19:00 AM From: Craig Jacobs Respond to of 13157
from the yahoo board... interactive television content? Somebody is cooking something in the kitchen. MGM in Talks With Liberty Media About Joint Venture Santa Monica, California, April 16 (Bloomberg) -- Metro- Goldwyn-Mayer Inc., owner of one of the largest film libraries, is in talks with Liberty Media Group and other cable programming companies about forming joint ventures and distributing its films on cable, a person familiar with the talks said. MGM has been in negotiations for the past couple of weeks with AT&T Corp. unit Liberty, Cablevision Systems Corp. and USA Networks Inc., the person said. Shares of MGM, the Hollywood studio controlled by billionaire Kirk Kerkorian, rose 7.8 percent after the Hollywood Reporter reported the talks. MGM, which hasn't turned an annual profit in 10 years, has long sought better distribution for its more than 5,000 films and 8,200 episodes of TV shows. The company has been talking with the cable programmers about licensing its films for their cable networks and about forming joint ventures to create new networks that would include MGM content, the person said. ''Liberty would make the most sense,'' said Matthew Harrigan, an analyst at J.P. Morgan Securities Inc. ''Liberty has great cable assets and would be able to effectively lever MGM's assets.'' MGM, USA Networks and Cablevision declined to comment. Officials at Liberty weren't immediately available to comment. Santa Monica, California-based MGM is also talking with several studios, including Viacom Inc.'s Paramount and Seagram Co.'s Universal, about distributing MGM's videos overseas, the person said. MGM would pay the studio a distribution fee and keep all the revenue generated from the videos. MGM also has talked with News Corp.'s Fox studio about distributing MGM movies overseas, the person said. Merger Talks Denied The Hollywood Reporter also said that MGM has talked with the cable programmers about a possible merger, though the person close to the talks denied that. J.P. Morgan's Harrigan said MGM could fetch $20 a share in a takeover. MGM's shares today rose 1 1/16 to a high of 14 15/16 in trading of 366,400 shares, more than four times the three-month daily average. Liberty, which is headed cable television pioneer John Malone, owns stakes in more than 100 cable networks, including Encore, a premium movie channel. Malone, who built Liberty Media's former parent Tele- Communications Inc. into the second-largest U.S. cable-TV company before selling it to AT&T, has been on a buying spree with the $5.5 billion in cash received from the sale last month. Liberty has announced several major transactions since then, and is said to be looking for more transactions, especially on the Internet through the company's majority-owned TCI Music Inc. Apr/16/1999 19:49