Looks like Sony
MGM has been in play for several months now, leaving shareholders and speculators wondering feverishly who will end up with such movie franchises as James Bond and Rocky. Time Warner
It's too bad, since I believe Time Warner would have been able to maximize the value of the library in a much better fashion than Sony will. Time Warner's cable and TV assets would have offered optimal opportunities, in my opinion. Sony will do well with the library, certainly, but one thing that has to be kept in mind is that Sony isn't going this deal alone. Comcast
Individual investors should be wary of entering any of these stocks solely because of these news catalysts. If one is interested in Time Warner or Comcast or Sony, one should have other reasons to invest instead of complete reliance on the MGM library buy. I believe the asset will generate a quality revenue stream over time and has the potential for growth (so long as costs are kept to a judicious level), but in the overall scheme of things, Sony shouldn't be traded for the long term on the acquisition.
For more Foolish coverage of MGM, read:
- MGM Stays in the Picture, by Dave Marino-Nachison
- MGM Waiting for Final Cut, by Steven Mallas
- MGM Readies for Close-Up, by Phil Wohl
Fool contributor Steven Mallas owns none of the companies mentioned.