Spyglass Entitled to $4 Million Breakup Fee If MGM Studio Deal Is Breached

Spyglass Entertainment Group Inc., whose executives Gary Barber and Roger Birnbaum will run Metro- Goldwyn-Mayer Inc. after its bankruptcy, is entitled to a $4 million break-up fee plus expenses of as much as $500,000 if it suffers any loss or damage from a breach of its agreement with the studio, according to a court filing.

The break-up fee won’t be triggered by last-minute changes to MGM’s deal with Spyglass, which were “consensual,” said two people with knowledge of the arrangement, who declined to be named.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: Peter Blumberg at pblumberg1@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.