Burdened by Billions in Debt, MGM Puts Itself Up for Sale

LOS ANGELES — Metro-Goldwyn-Mayer is back on the block.

The film studio, crumbling under the weight of almost $4 billion in debt, said late Friday that it would seek a buyer. MGM could also try to merge with another media company or remain independent with new equity investors, an option that is regarded by analysts as unlikely.

The announcement, which was expected, is a fishing expedition to see how much the studio can fetch in its diminished state, analysts said. Estimates for the studio, which owns a 4,000-title film library and holds the rights to the James Bond franchise, range from a bargain-basement price of $1.5 billion to almost $3 billion.

A consortium that includes Sony, Comcast, Providence Equity Partners and the Quadrangle Group took MGM private in 2004 for $5 billion.

Although MGM has not yet opened its books to potential buyers — that process starts now — interested parties have been evaluating the company. Time Warner, sitting on a deep cash reserve, is considered a candidate; Warner already plans to co-produce two “Hobbit” movies with MGM.

Other potential bidders include Qualia Capital, a private equity fund run by the Hollywood veteran Amir Malin; 20th Century Fox, which distributes MGM’s home entertainment products; and Lionsgate.

MGM also said that it had gained additional concessions from lenders to allow it to pursue a merger or acquisition, a process that is expected to take a couple of months or more. MGM can now skip interest payments until Jan. 31. Previously, lenders had agreed to allow MGM to skip payments for September, October and November.

Once the most powerful studio in Hollywood, MGM has only released one movie in the last year, a remake of “Fame” that sputtered at the box office. A studio spokeswoman said MGM had enough cash on hand to market and complete a handful of films planned for next year, including a ribald comedy called “Hot Tub Time Machine.”

The company is currently under the leadership of the turnaround expert Stephen F. Cooper, who took over in August after the company fired Harry E. Sloan as chief executive.