Warner Bros. was in works to purchase MGM Studios but has made an announcement only a day after a group led by Sony Corp. reportedly raised its offer for the studio to nearly $5 billion.
Dick Parsons, Time Warner Chairman and Chief Executive Officer, said, “Although MGM is a valuable asset, we have decided to withdraw our bid. As we pledged to our shareholders, we approach every potential acquisition with strict financial discipline. Unfortunately, Time Warner could not reach agreement with MGM at a price that would have represented a prudent use of our growing financial capacity. We are confident that there are other capital allocation choices that will enable us to continue to build shareholder value.”
