ABSTRACT
Metro-Goldwyn Mayer (MGM) dug in and moved to block the tender offer by taking Kirk Kerkorian to court. Since Kerkorian intended to borrow the needed money from Transamerica, the suit argued that Transamerica's backing of Kerkorian would be in violation of antitrust laws. Kerkorian had the chance to closely observe the workings of a successful motion picture company as a result of the sale, which may have influenced his decision to acquire MGM. Kerkorian needed a cash infusion to finance the MGM Grand Hotel, which had gone substantially over budget, and had his way. MGM's promotion heavily targeted African-Americans, which helped launch the Blaxploitation film cycle. In May 1972, MGM got out of the record business. Aubrey sold off MGM Records and its Los Angeles record-pressing plant, MGM Record Studios, to Polygram Corp an affiliate of the Dutch-based Philips cartel. Kerkorian wanted to prove to skeptics that MGM would remain a force in film and television.
