MGM studios to be bought by Sony

One of MGM's best loved films is The Wizard of Oz

The Sony offer is reported to be $5bn (£2.78bn), over half in cash and the remainder the assumption of MGM debts. The deal will give Sony access to MGM's film library, a key source of cash as more movies are released on DVD.

MGM classics include Ben Hur, Gone With the Wind and The Wizard of Oz; it also has the rights to James Bond films.

MGM was founded in the golden age of Hollywood in 1924 after a mergez between Metro Pictures Corporation, Goldwyn Pictures, and Louis B Mayer Productions. The iconic studio has been in talks with bidders for several months, and a decision on the sale is now expected to come within days.