MGM has completed the sale of its 20% equity stake in RainbowCable Networks, which includes American Movie Classics, Independent FilmChannel and Women's Entertainment, back to Cablevision Systems Corporation.

The sale, believed to be worth $500m, was announced last month.

MGM receives $250m in cash at the close of transaction while theremaining $250m is a note payable in five months.

As previouslyreported (ScreenDaily, Jul 1), MGM chairman and chief executive officer AlexYemenidjian said the sale left the company with a "100% debt-free" balancesheet, and paves the way for other opportunities including the studio's bid forthe entertainment assets of Vivendi Universal.