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  "documentTitle": "Time Warner Inc. (TWX)",
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  "authorName": "Lazard",
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  "presentationDate": "2006-02-01 00:00:00",
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      "text": "TWX, on several occasions, has missed the opportunity to acquire MGM.",
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      "text": "The idea of acquiring MGM still makes strategic sense for TWX. On December 8, 2005, Mr. Parsons said TWX was still open to the idea of acquiring MGM stating that \"the basic idea of a deal remains\" if MGM could be obtained at a reasonable price.",
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      "text": "Ten days went by and then, 90 minutes before the board of MGM was to consider the transaction with the Sony consortium, TWX indicated that in two to three days, TWX could be in a position to make a binding commitment at a price in excess of the $12.00 price from the Sony consortium. MGM's board approved the deal with the Sony consortium.",
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      "text": "How was TWX to justify as prudent an increased offer 10 days later? As stated by The New York Times, \"...TWX's last-minute effort raises some awkward questions about the earlier comments of Mr. Parsons about withdrawing from the deal. If buying MGM was too expensive, as he had said, how would he justify an even higher offer later?\"",
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      "text": "The proxy filed by MGM makes clear that TWX was indecisive and unable to create deal momentum. In early August 2004, TWX had the opportunity to acquire the company without competition from the Sony consortium. Kirk Kerkorian seemed to favor a deal with TWX. By the end of August 2004, TWX it appeared could have acted quickly and definitively and won the deal. On about August 27, MGM was consulting with its board on the terms of the TWX deal, including \"the significant likelihood that TWX would be able to complete the merger, the absence of a financing condition, and the continuing lack of progress in negotiations with the Sony consortium ... By this time most of the contractual issues with TWX had been resolved and the parties continued to expeditiously resolve the remaining open issues. TWX indicated that it would need approximately two weeks to complete its due diligence.\"",
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      "text": "On September 13, TWX issued a press release stating that TWX had withdrawn its bid for MGM, having not been able to \"reach agreement with MGM at a price that would have represented a prudent use of our growing financial capacity.\"",
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      "text": "TWX, on several occasions, has missed the opportunity to acquire MGM. In 2002, TWX and MGM had discussions. In 2003, TWX and MGM had discussions. In 2004, TWX and MGM had discussions. By the summer of 2004, the deal appeared to be TWX's to lose.",
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      "text": "The competitive position of Filmed Entertainment would have been substantially enhanced if TWX had been successful in acquiring MGM. Pro forma for an MGM acquisition, the library of Filmed Entertainment would have been more than twice as large as the next largest library. Exhibit 2B.53 discusses the missed opportunity in connection with MGM.",
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      "text": "By September 1, the possibility of a transaction had leaked to the press. TWX could have used this opportunity, and the attendant pressure, to resolve all open points expeditiously and definitively announce an agreement. Sony (and subsequently Comcast), however, had the opening they needed.",
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      "text": "\"...TWX's last-minute effort raises some awkward questions about the earlier comments of Mr. Parsons about withdrawing from the deal. If buying MGM was too expensive, as he had said, how would he justify an even higher offer later?\" — The New York Times",
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      "kind": "source-note",
      "text": "(a) MGM proxy, October 29, 2004. (b) Time Warner Press Release, Time Warner Inc. Statement on Metro-Goldwyn-Mayer Inc., September 13, 2004. (c) Andrew Ross Sorkin, Time Warner Said No Deal and Then Tried to Deal, The New York Times, October 31, 2004. (d) Agence France-Presse, Time Warner Still Open to Buying MGM at Reasonable Price, December 8, 2005.",
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      "text": "EXHIBIT 2B.53: MISSED OPPORTUNITY TO PURCHASE MGM",
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      "text": "CHAPTER 2B: CONTENT",
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