Icahn sells out of MGM, studio preps IPO

Carl Icahn has sold his stake in MGM, clearing the way for the Hollywood studio to launch an IPO.

Icahn had at one point hoped to combine MGM with another company in which he was a significant shareholder, Lionsgate.

However, having already sold out of LionsGate, the billionaire investor has now sold his MGM stake back to the company for about US$590 million, according to the LA Times, which had seen a letter sent to MGM stockholders.

MGM can now proceed with a planned IPO that is expected to value the company at between US$2.5 billion – US$3 billion.

The timing of the IPO has not been announced, but it could happen before end-2012. The studio will be in the spotlight in at the end of the year with the release of the new James Bond movie Skyfall and first instalment of The Hobbit trilogy.