MGM has been offered $500 million by Ryan Kavanaugh’s Relativity Media LLC as part of a new plan to remain independent.
After a second round of bidding closed in March, valuing the studio at far less than they had been looking for, the companies steering committee presented a plan to creditors to go it alone; the plan apparently requires $1 billion in total to make 6 to 8 films per year.
Relativity Media already provides finance for Universal Studios and Sony; the deal would see the company take over much of MGM’s production.
Meanwhile, it appears that the Scott brothers, Ridley and Tony, have submitted a restructuring plan to MGM’s creditors. It is unknown whether they are planning to merge Scott Free, their production company, with MGM or whether they are seeking a stake in the studio.