With a Friday bidding deadline for troubled MGM, News Corp. has reached an agreement on language in the studio’s nondisclosure agreement that threatened to derail News Corp.’s bid, according to the Los Angeles Times.
Several other bids for the company already have come in, believed to be in the $1.5 billion range, insiders told WaxWord.
In all, about a half-dozen bids are expected, including Fox, Time Warner and Lionsgate. Also, Indian media conglomerate Reliance has allied with Sony and Summit to make its bid.
As previously reported by Waxword, executives at News Corp.-owned Fox had feared that signing the unusually restrictive NDA could place their own company at risk.
However, according to the Times, MGM altered the language of the NDA enough to reassure News Corp., and the conglom is expected to look at MGM’s books Friday.
The first round of bids is not binding, so many are expected to bid just to get the right to see more detailed financials for a second round.
MGM said in a statement: "MGM has received numerous indications of interest. The company continues to evaluate those bids and is having discussions with the interested parties. MGM expects the next phase of this process to begin next week."
More to read:
MGM Library Cash Flow Underwhelms Potential Bidders
MGM Sale Expects to Elicit a Half-Dozen Bids
