Lionsgate Exits MGM Race

SANTA MONICA: Lionsgate is said to have dropped out of the bidding for MGM, opting not to up its reported $1.3 billion to $1.4 billion bid.

MGM has rejected the independent studio’s offer as too low—the company is seeking a $2 billion price tag as it looks to pay down its $4 billion debt. Time Warner and billionaire Len Blavatnik’s Access Industries have reportedly submitted bids of $1.5 billion.

Lionsgate is in the midst of a public feud with financier Carl Icahn, who is attempting a takeover of the company in part because he disagrees with its bid for MGM. However, The Wall Street Journal reports that Lionsgate’s decision to drop out of the MGM bidding is not related to the pressure coming from Icahn.