Lions Gate Entertainment Corp has made a merger proposal to MGM, reported the LA Times on Tuesday. If the deal goes through, MGM lenders will owe 55% of the merged company, said the paper.
MGM's bankruptcy plan calls for Spyglass Entertainment founders Gary Barber and Roger Birnbaun to take over the management of the studio once it emerges from bankruptcy.
If MGM were to get a bid from another party such as Lions Gate, they will have to pay Spyglass a breakup fee of $4 to $5 million, said LA Times.
Source Reuters
