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2010.07.26 10:26:07
Sharky
Private Equity damage about to start

Who killed James Bond?

Private Equity did.

 

The answer is not obvious, but if you read my blog post about how Private Equity destroys companies by loading them with debt, you already have a clue.

 

MGM studios is in deep trouble, with a debt pile of about $4bn, and the cash flow generated from DVD sales keeps on decreasing. Does it sound familiar? Have a look at this article in the FT, and think about Josh Kosman's The Buyout of America, and you will immediately understand why MGM is in trouble.

 

The funny thing is, once the acquisition was made by the PE groups (together with Sony), they immediately restructured the work force... They followed the PE recipe to the letter!

 



   Private Equity | PE | MGM | debt | loan | buyout
 



Prosperitypersonal in the Press

TeaEngPeng.com

"I am very impressed because it is graphic intensive with drag and drop feature, yet very fast processing time. You got to try it to believe."


 
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