For Hollywood, That's Slow Biz

The market for studios is falling faster than a Demi Moore flick

In the heat of mid-July, the prospective sale of Metro-Goldwyn-Mayer Inc. was melting down. No one had offered anywhere near the $2 billion expected, and investment banker Lazard Freres & Co. was set to search for new buyers. In his Las Vegas office at the MGM Grand Inc. casino, company President Alex Yemenidjian fielded a call from the casino's majority shareholder, Kirk Kerkorian. "Can you believe how little the bids are?" asked Kerkorian, 79. "Why don't you make a call?"

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