A $500M glimmer of hope on the MGM front?
Investors want to give MGM $500 million to start making new productions according to Nikki Finke at Deadline.com. Relativity Media, backed by a hedge fund, must see the profit potential in projects and properties like “The Hobbit” and further James Bond films. The report says this offer was made three weeks ago which means they probably weren’t following TORn’s advice, but maybe those holding MGM’s $3.7 billion debt will, and allow this to happen. In any case, the auction for MGM seems to be dead. If this deal is accepted, “The Hobbit,” could go forward right away. One also wonders if last Thursday’s long meeting was more about urging the bondholders to accept an offer like this and less about asking them for more money directly. Of course, investors may also want to carefully watch their money and that taps into the deepest fears of financiers wanting creative input into films. But with the LOTR track record of Producer Peter Jackson and proven visionary Guillermo del Toro directing, those fears are tempered. Thanks to Sunflower on our message boards and the many pairs of eyes keeping us up to date.Posted in Guillermo Del Toro, Hobbit Movie, MGM, Peter Jackson, Studios on April 8, 2010 by MrCere A $500M glimmer of hope on the MGM front? | Discuss