The board of MGM, the storied Hollywood studio that exited bankruptcy in 2010, will discuss a long-awaited initial stock offering when it meets on March 18 amid indications that debt-holders who control the company may be nearing a decision to file.
MGM told investors it will release year-end numbers to investors on March 18 at 7:30 pm EST after the board meeting, and would hold a conference call the next day to explain the results and its current thinking on an IPO, according to three people with knowledge of the communication.
MGM is being advised by Goldman Sachs Group Inc and J. P Morgan Chase & Co on a possible IPO, according to two people with knowledge of the matter. The board may not decide on an IPO during its meeting, although investors say they have been told that a decision is likely this year, said one of the people.
A spokeswoman for MGM had no comment on either the board meeting or the scheduling of a potential IPO.
MGM is riding a hot streak at the box office that might set the stage for an IPO, taking public the 88-year-old studio synonymous with the golden age of Hollywood and responsible for such classics as "Gone with the Wind" and "The Wizard of OZ."
The studio jointly produced outsized hits "Skyfall," the James Bond movie, and the "Lord of the Rings" prequel "The Hobbit: An Unexpected Journey" that together generated world-wide ticket sales of $2.1 billion, according to the website Box Office Mojo.
"After two years of turning around the company and reinvigorating the studio, the time is right to do an IPO and broaden the shareholder base," said Steve Azarbad, co-founder and portfolio manager with Maglan Capital, which invests in distressed assets and owns 1 percent of MGM. MGM generated $146.7 million in pre-tax earnings through its first nine quarters, ending Sept. 30, it told its investors, a 63 percent increase over the same period a year earlier. The company has library of about 4,100 older films and 10,800 TV episodes, it said in its 2010 bankruptcy filing.
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