Time Warner Drops Out Of MGM Bidding, Says Price Too High

NEW YORK, Sept 13 (AFP) - Time Warner said Monday it was dropping its offer for Metro Goldwyn Mayer, saying the bidding for the last remaining major independent Hollywood studio was getting too pricey.
"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," Time Warner chairman and chief executive Dick Parsons said.
"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."
The move by the world`s biggest media-entertainment group appears to clear the way for an offer by Japan`s Sony, which according to some news reports raised its bid for MGM to five billion dollars in an effort to beat Time Warner`s offer.