Report: MGM Studios Mulls IPO Plans

By FOXBusiness

After churning out a number of hit movies in recent months, iconic film studio MGM is reportedly set to discuss an initial public offering later this month.

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According to Reuters, debtholders who control the company may be nearing a decision to file for an IPO after emerging from bankruptcy in 2010.

The Hollywood film studio told investors it will release year-end numbers on March 18 after a board meeting and also hold a conference call to explain its IPO deliberations, Reuters reported.

The speculation comes after MGM produced a number of blockbusters in recent months, including James Bond movie “Skyfall” and “The Hobbit,” a prequel to the “Lord of the Rings.” Upcoming movies over the next several years include more “Hobbit” films as well as a remake of “Robocop.”

MGM, which is being advised by Goldman Sachs (NYSE:GS) and J.P. Morgan Chase (NYSE:JPM), may not decide on an IPO during the meeting, although investors have been told to expect a decision this year, Reuters reported.

It’s not clear how much an IPO would value MGM, but the studio bought back 17.6 million shares from investor Carl Icahn in August in a transaction that valued the company at about $2.4 billion, the wire service reported.