Sony in talks to buy MGM

Chicago (IL) - According to a report from Reuters, Sony confirmed to be in exclusive talks to acquire movie studio Metro-Goldwyn-Mayer (MGM). Sony Vice Chairman Howard Stringer said at the electronics and entertainment conglomerate’s annual strategy meeting that the company was "preparing an exclusive analysis" of MGM and has started the negotiation period.

Stringer considered Sony’s move as "very conservative". A potential take-over would add to Sony’s movie library roughly 4,000 movies including the James Bond and Pink Panther series.

Analysts reacted cautious after Sony released the news, indicating that a acquisition of MGM could delay Son’s recovery of operating performance - given the risk of a volatile movie business and MGM’s losses over the past three years.

Stringer however apperas to confident with Sony’s approach : "Sony Pictures has begun the year very well with the last seven pictures all profitable," Stringer told Reuters. "That is unusual."

Industry sources value a potential acquisition of MGM at about $5 billion. Sony’s most recent acquisition of a movie studio dates back to 1989, when the company purchased Columbia Pictures for $3.4 billion.