THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, June 17, 1995 TAG: 9506170322
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Short : 45 lines
International Family Entertainment Inc. is exploring the possibility of bidding for or investing in one of Hollywood's last independent movie studios, Samuel Goldwyn Co.
Anthony D. Thomopoulos, chief executive of IFE's MTM Entertainment division, said Friday that IFE executives have had ``preliminary discussions'' with representatives of the studio. But he said it's premature to consider the company as a serious suitor.
Beach-based IFE, parent of The Family Channel, was one of about a half-dozen entertainment companies identified by the trade newspaper Hollywood Reporter in a story Friday as candidates to acquire Samuel Goldwyn.
Rumors about a potential bidding contest for the studio erupted the day before after Samuel Goldwyn said it hired an investment bank to locate new sources of financing to pay down its $65 million debt.
Samuel Goldwyn, which also owns a chain of movie theaters, announced the action after reporting a loss of $12.8 million for its fiscal fourth quarter. It said it faces defaulting on its bank loans if it can't raise more cash.
At its current price of about $6 a share, Samuel Goldwyn's shares would fetch about $52 million.
Christopher Borde, an analyst with Paul Kagan Associates Inc. in Los Angeles, said he considers IFE a dark-horse candidate to buy the studio. Borde said he expects Samuel Goldwyn to look first for a cash injection from one of several European entertainment conglomerates.
But analysts said an IFE deal, perhaps in conjunction with its largest shareholder, Tele-Communications Inc., could make sense because of IFE's recently stated plan to move into feature films. Plus, it would fit an IFE pattern of snapping up distressed properties. ILLUSTRATION: Samuel Goldwyn Co. is best known for critically its acclaimed
art films like ``The Madness of King George'' and ``The Red
Lantern,'' but also syndicates the low-brow TV game show, ``The
American Gladiators.''
by CNB