STATEMENT FROM METRO-GOLDWYN-MAYER STUDIOS INC.

LOS ANGELES, CA August 25, 2008 — Contrary to recent media reports, Metro-Goldwyn-Mayer Studios Inc. (MGM) is not for sale. There is no "asking price" for the company. MGM's existing financing arrangements are sufficient to meet its needs. Goldman, Sachs has been retained to explore enhancements to MGM's long-term capital structure. All of the MGM shareholders, including Providence Equity Partners, TPG, Sony Corp. Of America and Comcast Corp, are pleased with the Company's current momentum and are committed to the future growth of the studio.

"Enhancements to ... long-term capital structure"? Isn't that what selling is? In any event, we'll give the shareholders the benefit of the doubt; the principals have every reason to be "pleased with the company's current momentum," with the minor exception of Heather O'Rourke's outstanding request to God to burn the studio to the ground before it can remake Poltergeist. That will no doubt affect the asking price, which insiders place around an overvalued $5.2 billion that would likely keep the Lion in his same fetid den for at least another year. At least someone could come groom him every once in a while; we hear Kerkorian loves cats. Or at least certain feline parts — where on Leo's body would his library be?

• More speculation over MGM sale [THR]
• MGM: On the Block, Again [BusinessWeek]

Most observers seem to think its a scenario as likely as the anthrax contagion rumored to be puffed through MGM Tower's central A/C, but frankly, we're in love with the idea. Moreover, we're in love with the 91-year-old mogul still rocking the brass balls it takes to reportedly offer $3 billion for the studio he sold to Sony four years ago for $5 billion:

Kerkorian's purported $3 billion offer roughly equates to the value of the studio implied in recent trading activity in MGM debt instruments, banking-community insiders noted. ...

Well-placed sources indicate MGM is sufficiently capitalized to fund film chief Mary Parent's ambitious new slate of film productions and other studio operations for at least another year. But after that, most believe, the studio likely will need to turn to new equity investors to maintain equilibrium.

We, too, had heard earlier whispers that Reliance Big Entertainment had considered an MGM bid before settling on DreamWorks for a fraction of the cost (and about 10 times the momentum), but thank goodness it took a pass. No potential deal boasts the appeal of Kerkorian 4.0, whose traditional role as Moribund MGM Heir historically augurs at least a few short-term miracles for the studio; the guy clearly can't wait to get in on that coveted remake of Red Dawn and/or putt around in the United Artists power vacuum. Which reminds us: Expect a press release from Harry Sloan by the end of the day assuring Hollywood that Tom Cruise is still in charge. He's just saying. Is all.

• Rumor values MGM at $3 billion [THR]