LOS ANGELES, July 10 -- Metro-Goldwyn-Mayer will acquire the production arm and vast library of Orion Pictures and two other film companies under a deal approved by stockholders of Orion's parent. Metromedia International Group Inc. stockholders voted today in favor of selling its entertainment assets, including its 2,200-title film and TV library, to P&F Acquisition Co., the parent company of Metro-Goldwyn- Mayer Inc. The $573 million deal includes the production and distribution arms of Orion, Goldwyn Entertainment and Motion Picture Corp. of America.
MIG will keep its Landmark Theatre Group, a chain of 139 movie screens across the nation. At the annual meeting, Stuart Subotnick, MIG's president and chief executive officer, told stockholders that 'the funds generated through the sale of the entertainment assets will go a long way in improving the company's balance sheet, reducing debt and providing capital for the expansion of the international communications operations.' Orion had a triumphant run in the 1980s with such hit movies as '10, ' 'Arthur,' 'Amadeus,' 'Platoon,' 'Robocop,' 'Dances With Wolves' and 'The Silence of the Lambs.' But even after winning four best picture Oscars the studio fell on hard times and turned out a string of box-office flops, including 'Love Field,' 'Boxing Helena,' 'Car 54 Where Are You?' and 'Eight Heads in a Duffel Bag.' Industry watchers expect many of the 260 employees at Orion and Goldwyn will be fired when the transaction is completed. ---
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