The MGM studio was founded in a 1924 merger

The talks are said to be at an advanced stage for a deal that could be worth up to $5bn (�2.8bn).

Buy-out firms including Texas Pacific Group are negotiating with billionaire financier Kirk Kerkorian to buy his 70%-plus stake, Reuters news agency said.

Talks are understood to be taking place over how to finance any deal.

MGM, Sony, Texas Pacific Group, which may be partnered by Providence Equity Partners in any deal, declined to comment.

Shares in MGM ended up $2.10 at $19.75 on the New York Stock Exchange on Wednesday, after hitting a two-year high of $20.25.

The studio was founded in 1924 after a merger between Metro Pictures Corporation, Goldwyn Pictures, and Louis B Mayer Productions.

Classic MGM films include Gone With The Wind, Ben Hur, The Wizard Of Oz, Doctor Zhivago, How The West Was Won and Mutiny On The Bounty as well as many musicals.

The company's large movie library also includes the rights to James Bond films.