Renegade investor Carl Icahn is hoping to force a merger between Lionsgate and MGM, the Wall Street Journal reports. Icahn has been engaged in a lengthy proxy war for control of Lionsgate for much of the past year.
MGM declined to comment for this article, and representatives for Icahn and Lionsgate did not respond to TheWrap’s calls.
Citing people familiar with the matter, the Journal reports Icahn is steadily building his stake in MGM, and has already amassed $400 million to $500 million of the studio’s debt.
During that time, MGM has labored under some $4 billion in debt, while trying to attract a buyer. MGM is reportedly moving toward a prepacked bankruptcy deal, in which Spyglass Entertainment and its founders Gary Barber and Roger Birnbaum would take over management of the venerable studio.
