Investor Carl Icahn sells his stake in MGM back to the studio

A year after he failed to coordinate a merger between Lions Gate Studios and MGM, during the lion's financial woes, billionaire investor Carl Icahn has reportedly got out of the movie business.

According to a report in the LA Times, based on a confidential memo, Icahn sold his (approximate) 25% stake in MGM back to the studio for $590m - $33.50 for each of his 17.6 million shares. In private markets, MGM shares have been swapping hands for around $28 recently.

Late last year, Icahn divested his 33% stake in Lions Gate following the failure to force the two studios together. It leaves him with little to no investment in the movie making industry.

The report points out that it was never reported what Icahn paid for his stake in MGM initially, so few know if he made a profit or loss on the attempted maneuver to create on of the world's largest studios.

Nor it is apparent how MGM financed the buy back, as the studio was last known to have only $200m in cash and a $500m credit line.

In all likelihood, the buy back from Icahn is part of a larger strategy to take MGM to an Initial Public Offering next year.

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