Time Warner Inc. may make a bid for Metro-Goldwyn-Mayer Inc., the Wall Street Journal reported on Friday, citing people familiar with the situation.
Time Warner may renew merger discussions with the film and television studio and are looking at a possible offer to rival that of Sony Corp. and its private equity partners, the Journal said. Time Warner and MGM had held preliminary discussions over a deal late last year.
A group of bidders interested in MGM's vast library of films, led by Japan's Sony, are in talks to pay as much as $5 billion for the legendary film and television studio, sources familiar with the discussions have told Reuters.
Sony, which primarily wants access to the more than 4,000 films in MGM's library, initiated talks with MGM, sources familiar with the talks said. Sony's investment, if it materializes, would include cash from private equity investors Texas Pacific Group and Providence Equity, sources said.
Billionaire financier Kirk Kerkorian, who paid $1.3 billion to buy MGM in 1996 for a third time, owns 74 percent of the company with his investment firm Tracinda Corp.
A Time Warner representative could not be immediately reached for comment by Reuters.
