Dan Loeb Buys A Stake In MGM
Third Point's Dan Loeb is becoming something of a media mogul it seems. He's held Yahoo for ages. He owns a stake in Virgin Media. He's in Sony. And now he's buying a piece of Metro Goldyn Mayer, according to The Hollywood Reporter.
Loeb has apparently been acquiring shares on the private market in the closely-held movie and TV company, most recently at a price of about $50 a share -- a 78 percent increase over the price a month ago of $39 a share. That, in turn, is about double what MGM traded for a year earlier, shortly after it came out of a pre-packaged bankruptcy.
Loeb had no comment, and it's unclear how many shares of MGM stock he's bought. MGM's private stock currently trades for $51 a share.
The rumor on MGM is that the company is planning to raise capital in the near future, perhaps through a private placement. Because IPOs are so uncool these days.
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