Sony Corp. is securiing new backing in the auction for Metro-Goldwyn-Mayer Inc., spurring rival bidder Time Warner Inc. to drop out of the contest.
Time Warner withdrew its $11 per share offer saying in a statement that it couldn't reach a price "that would have represented a prudent use" of its assets.
Controlling shareholder Kirk Kirkorian has been looking to sell the studio for five months, making it the third time he has sold the company over the past thirty years.
Sony’s consortium, which also includes Texas Pacific Group and Providence Equity Partners, is expected to add at least one new partner and raise its bid to $3.9 billion -- including assumed debt -- or $12 a share.
Both groups are primarily after MGM’s 4,000 title film library for recycling through the DVD business.