MGM Favors Fox

The company chooses the News Corp. unit over Sony.
Publish date:

Fabled Hollywood studio Metro-Goldwyn-Mayer has reorganized its film and TV distribution, the company said late Tuesday.

As a result, the closely held studio said it will no longer divide its home entertainment releases between


(SNE) - Get Report

Sony Pictures Entertainment and

News Corp.'s

(NWS) - Get Report

20th Century Fox, choosing instead to consolidate that business with Fox.

Fox will also continue to distribute MGM's theatrical product. MGM is also pulling its TV distribution business in-house.

"MGM's motion picture distribution business is growing rapidly as we will release some 80 new feature films in North America over the next four years," said MGM Chairman Harry Sloan, in a statement. "We are now ready to turn our attention to our television and home entertainment distribution businesses. In so doing, we have identified another important opportunity to build out our business by returning our worldwide television sales operations in-house and by consolidating our home entertainment releases with a single distributor."

Sloan took charge at MGM following the successful sale of his European media conglomerate SBS Broadcasting last year to private-equity funds Permira and Kohlberg Kravis Roberts for over $2 billion in cash.

MGM has a formidable film and television library. The studio boasts some 10,000 episodes of TV programming and 4,000 feature film titles.

MGM is jointly held by Providence Equity Partners, its largest stakeholder at 29%, along with Texas Pacific Group with 21%, Sony and


(CMCSA) - Get Report

with 20% each, DLJ Merchant Banking Partners with 7% and Quadrangle Group with 3%.