A group headed by Sony is to buy Hollywood film studio Metro-Goldwyn-Mayer (MGM) for $2.85 billion.

A Reuters report claims that the 6-Sony group, made up of the US division of Sony, Providence Equity Partners, Texas Pacific Group and DLJ Merchant Banking Partners, hope to "mine MGM's lucrative library for the booming DVD market" with the purchase.

Sony has also reached an agreement with US cable operator Comcast that will see Comcast offer Sony and MGM movies over its video-on-demand systems, and on new cable channels it will form with the 6-Sony group.

The companies will assume MGM's debt of around $2 billion.