MGM Officially Considering Selling, If Things Don't Get Better
by Alex Billington
November 14, 2009
Back in September, we reported that MGM (aka Metro-Goldwyn-Mayer) was "on the verge of bankruptcy" and was asking for emergency funds to say alive. The studio has finally made announcements that indicate that they are actually going up for sale. Variety and Nikki Finke confirmed the news. "MGM also said today it is beginning a process to explore various strategic alternatives including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the Company." It looks like it's the end of an era for MGM once and for all. So will The Hobbit be caught in crossfire, too? We're not entirely sure.
The announcement came following a meeting of MGM debtholders, who agreed to extend forbearance on debt payments until January 31st, the second extension that they've been given. Apparently MGM owes some $3.7 billion in debt and brought in Stephen Cooper to replace Harry Sloan as CEO and attempt to recover the company. It sounds like, despite owning some 4000 titles in their library, Cooper wasn't able to get them on the right track, and has decided to consider a sale instead. From my standpoint, I think that's the best decision they could make, similar to how New Line became a part of Warner Brothers years ago.
The biggest franchises that MGM owns are James Bond and The Hobbit, but we don't know what will happen to either of those if they do sell or partner with another studio. Normally we don't cover this kind of news given all the technicalities surrounding running a business, but we'll do our best to keep you updated!
wow. The idea of not seeing MGM logo infront of movies is something else. I've been watching that lion roar since I was a kid. wow. -Nostalgic Dave
dave13 on Nov 14, 2009
That should probably read $3.7 Billion instead of $3.7 million.
RogerOThornhill on Nov 14, 2009
Sabes on Nov 14, 2009
This is a sad time for movies
Dan W on Nov 14, 2009
3.7 Billion!?!?!? good lord.
d1rEct on Nov 14, 2009
Disney is going to buy it and own the movie world!!! (other then the WB and all its sister company's of course)
DoomCanoe on Nov 14, 2009
this just completely blows.
guh on Nov 14, 2009
Studios have not been managing costs for years. I'm sad to see it happen, but it deosnt suprise me either. There is a lot of bloat in the entertainment industry.
JimD on Nov 14, 2009
Noone owes 3 - 7 billion, it has to be 3.7 billion? Sell of James Bond for 4billion and problem solved
David Banner on Nov 15, 2009
This is a sad day for the sale of MGM? what will happen to the cataloge that is own by MGM. The vultures will be on the prawl, it just sad.
Cineprog on Nov 15, 2009
and people say downloading doesn't hurt the industry. Another one bites the dust.
Vold on Nov 16, 2009
I'D BUY THAT FOR A DOLLAR!!!!!!!
Rachel Replicant on Nov 17, 2009
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