PRINT THIS PAGE Providence Equity Partners and Texas Pacific Group to back $5bn offer for Hollywood studio27/04/2004. Source: AltAssets. 
 Providence Equity Partners and Texas Pacific Group are to back Sony's $5bn offer for Metro-Goldwyn-Mayer (MGM), Hollywood's last independent movie studio. Time Warner is also believed to be interested in the company but has not yet submitted a formal offer.
Under the terms of Sony's proposal, the consortium would acquire MGM for $5bn in cash, around $1.5bn of which would be financed by equity. A privately-owned MGM would licence its film library to Sony, which would distribute the films alongside its own catalogue, in return for a fee. The cash flows from the library would finance around $3.5bn in debt, according to the Financial Times.
It is also believed that the consortium would probably shut down MGM's film-making operations, which currently releases about a dozen new movies a year.
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