Hit #23

The long drawn out process of MGM's sale is finally done. It agreed to be bought by Sony for $12/share. This has been a painful wait. I bought most of my MGM shares at around $11.50/share, so this represents a premium of around 4%.

If you take into consideration the one-time dividend payout that MGM made recently, of $7/share my percent profit goes upto 60%.

In addition, over the last 4/5 months the constant back and forth between MGM, Sony and Time Warner provided a few short-time trading opportunities and I made some small change twice.

I will have another post following this on other content companies that are likely to be acquired in the next couple of years. Just a few months ago, Disney (DIS) got a hostile bid from Comcast. Having failed in that attempt, Comcast has now entered into a deal with Sony to buy upto 20% of MGM. I still think Comcast will make another attempt to buy Disney at a later point when Disney has a more shareholder-friendly management/board.