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

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