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MEDIA
MGM sells minority cable stakes
The motion picture and TV program firm will sell its 20% stake in three cable channels for $500 mil to Cablevision's Rainbow Media unit, which already owns the remaining 80%. Metro-Goldwyn-Mayer and Cablevision are both trying to buy Vivendi Universal's U.S. entertainment assets. MGM bought the stakes in 2001 for $825 mil, though it reaped $250 mil from Cablevision's sale of the Bravo cable channel. With other gains, MGM lost $35 mil in the end.
Vivendi buy is still anyone's game
Its U.S. entertainment assets have drawn six contenders, some of Hollywood's biggest names, but no knockout bids. That could make cash and the ability to do a deal fast swing factors as the French media giant winnows the next round of bids to two or three. Some of the current six might team up, since Vivendi doesn't want to sell piecemeal.
** Vivendi must pay ousted CEO Jean-Marie Messier $23.5 mil in severance, a U.S. arbitration panel ruled. Vivendi says the board never OK'd the package and vowed to contest the ruling.
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