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[Joe]

is it a significant percentage?

 

[Kleegamefan]

MGM has a press release out now confirming the agreement with Sony and their partners:


http://biz.yahoo.com/prnews/040913/lam139_1.html


Sony Gets MGM and Comcast sign a deal with sony for movies on demand

http://www.comingsoon.net/news.php?id=6369

At the same time, Sony Corporation of America and Comcast Corporation announced that Comcast, Sony Pictures Entertainment and the equity partners in the MGM transaction have reached agreement on a broad programming and distribution arrangement. It will allow for the distribution of Sony Pictures' and MGM content on Comcast's video on demand platform, and for the creation of a joint venture, to be managed by Comcast, establishing new cable channels featuring Sony and MGM content. While this agreement contemplates consummation of the acquisition of MGM, the parties will proceed with Sony content on a stand alone basis for VOD under any circumstances.

In addition Comcast is considering becoming a minority equity investor in the proposed MGM acquisition.

The thick plottens!

 

[Joe]

does sony want its own channel? game/movie/music previews, movies and music on demand...

 

[DarienA]

does sony want its own channel? game/movie/music previews, movies and music on demand...

Just the continued integration of television, movie, music and gaming entertainment in future devices....

 

[Son of Godzilla]

Can't wait for the FPS adaptation of Best Years of Our Lives.

 

[FitzOfRage]

is it a significant percentage?

They own about 100 million shares, though that's not a huge pecentage (I think it's something like 5%). It makes them the largest single shareholder though (because they had invested in Comcast and AT&T Broadband separately prior to their merger), and it's certainly gotten them cross promotion with G4, which Comcast owns of course.

 

[davis]

I wish Time Warner or Comcast would buy Cablevision.

 

[cja]

Just to crush any pre-conceptions about what Sony can do now the deal has been finalised

DJ Sony May Face Tug-Of-War With Joint MGM Owners -Nikkei (Dow Jones News Service)
Updated: Friday, September 24, 2004 04:56PM ET




TOKYO (Nikkei)--Sony Corp. (6758.TO) has finally snared Metro-Goldwyn-Mayer Inc. (MGM) after months of negotiations, but its decision to purchase the Hollywood movie studio jointly with others has left uncertain how it plans to negotiate through conflicting interests of other joint owners, the Nihon Keizai Shimbun reported in its Saturday morning edition.

Unlike its 1989 Columbia Pictures acquisition, in which it shouldered the entire purchase cost of $4.8 billion, the company contributed only about $300 million, or about 19% of the $1.6 billion capital pooled by a consortium consisting of Sony, leading U.S. cable television operator Comcast Corp. (CMCSK) and three investment funds.

Although Sony is believed to have obtained about 30% to 40% of the voting rights - Sony and other investors acquired different types of shares in terms of voting rights - it is likely that the company will have to listen to its partners' opinions.

Particularly, differing interests of investment funds, which pitched in a large portion of the purchase amount, may force Sony to put investment returns before business interests in distributing and selling MGM's movie software.

Signs of future conflict were seen during the purchase negotiations for MGM. One of the major reasons why it took months for the consortium to close the deal is said to be investment funds' demands that Sony guarantee returns and offer them the option of selling their MGM shareholdings to Sony in the future.

The major Japanese consumer electronics maker refused the demands, but offered a concession in the form of lower commissions for distribution and sales of MGM movie software.

Suffering from dismal business performance, Sony is believed to be hoping that the MGM purchase will help revitalize its flagging hardware business. MGM's large movie catalog appears to be an ideal resource with which Sony can promote the next-generation Blu-ray Disc DVD format, which the company supports, in the battle against the HD DVD format backed by Toshiba Corp. (6502.TO) and others.

However, Sony will have to convince other consortium members and MGM shareholders that siding with the Blu-ray camp will serve their interest of maximizing MGM's corporate value and returns on their investments.


(END) Dow Jones Newswires

09-24-04 1656ET

http://www.adr.com/adr?page=adrnews&formtype=4&level=C&prod=BT&mdate=20040924&mseq=5730