MGM Creditors have overwhelmingly approved a deal put on the table by Spyglass in September. MGM will now enter Chapter 11 bankruptcy proceedings and will emerge with Spyglass heads Gary Barber and Roger Birnbaum at the helm in return for a rumored 5% share of MGM. The remaining 95% will go to the creditors who will swap almost $4 billion in debt for equity ownership in the legendary studio, estimated to now be worth just under $2 billion. The deal puts up a major road block to the plans of Carl Ichan and Lions Gate, who entered a last minute offer to merge with MGM. However, according to Reuters, experts say the activist shareholder could still challenge the deal in bankruptcy court, and an eventual partnership between MGM and Lions Gate remains possible.
Of course, the primary question we’re all interested in is: what does this mean for “The Hobbit”? In this fan’s opinion, the answer is: very little. The movie has been greenlit which means the funds necessary to move forward with production have already been committed. We may never know exactly what shuffling of money and deal-making resulted in those funds becoming available, but. available they are, and the upcoming bankruptcy proceedings shouldn’t come anywhere close to affecting a revenue-making prospect like a major film in progress. Other than that, MGM will emerge as a healthier, better run, company which can only be good news to Hobbit fans everywhere.
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New Line, Warner Bros and MGM are pleased to have concluded successful discussions with the New Zealand government this past week. We’d like to thank Prime Minister Key, his Cabinet and the other dedicated New Zealand officials for their support and cooperation, which helped assuage our concerns and enabled us to keep The Hobbit in its proper home of New Zealand.
We’d also like to express very special appreciation to Peter Jackson, Fran Walsh and the people of New Zealand for their tireless support of The Hobbit and their commitment to maintain and grow their vibrant film industry. Filming is scheduled to begin in February 2011 and we look forward to returning to Middle-earth.
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The MGM, Lions Gate drama continues. The latest from Bloomberg.com: Lions Gate Entertainment Corp. is suing billionaire Carl Ichan over the Metro-Goldwyn-Mayer Inc. studio deal in federal court in New York, alleging the financier was “secretly plotting” to merge the studios. In the lawsuit, Vancouver-based Lions Gate, the studio whose films include “Crash” and “Precious,” alleges that Icahn realized by June that Lions Gate was in advanced negotiations with two unidentified studios. Aware that the deals might dilute his stake in Lions Gate, Icahn “took drastic and improper action,” the studio said.
Icahn, 74, the studio’s largest shareholder, undermined any proposed transactions by making false and misleading statements, Lions Gate said. He told the investing public that such a deal would be a “financial debacle” and issued press releases vowing to challenge any transaction and sue any entity that interfered with his tender offer, the studio said.
“Icahn opposed a merger with MGM not because it was bad for Lions Gate shareholders, but because it was good — so good, in fact, that he wanted to postpone it until he could buy as much of both companies as he could and thus extract for himself as much of the value stemming from the merger as possible,” Lions Gate said in the complaint, filed today in U.S. District Court in New York. Thanks to message board member Owain for the link. Read More…
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SYDNEY – Furious debate rages at this moment in New Zealand’s parliament on legislation sought by Warner Bros. to amend the country’s labor laws and make unionization of the local film industry more difficult. Meanwhile, key union leaders reported receiving death threats. Police have begun an investigation, according to a local press report.
The government has the necessary votes for the law revision and passage is expected later today. A Labour member of parliament decried today as a “day of shame.” The Labour and Green opposition have hammered on the loss of sovereignty implied by negotiating legislation with a foreign corporation, then ramming it through under an urgency procedure. The ruling National Party has emphasized the financial benefit of retaining the “Hobbit” production in country. More..
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Wingnut Films has released a statement from Peter Jackson and Fran Walsh in expression of their gratitude to the New Zealand Government, Warner Bros., New Line Cinema, the workers, and the fans who supported the making of The Hobbit in New Zealand.
From wetanz.com:
Filmmakers, Peter Jackson and Fran Walsh stated today “We are grateful to the Government for introducing legislation which shall give everyone in the film industry certainty as to their employment status. This clarification will provide much needed stability and reassurance for film workers as well as investors from within New Zealand and overseas.”
Jackson went on to thank Warner Brothers and New Line Cinema for their continued commitment to New Zealand. “Their respect for the skill and talent of Kiwi crews and performers speaks for itself.”
Finally, Jackson stated, “I feel enormous gratitude to the film technicians, actors and fans who came out in support of making these films in New Zealand. To the thousands of people who took the time to write and let us know they were with us – thank you. It made all the difference.”
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TORn reported a grass roots effort by some of working folks who call Weta Workshop home. Not sponsored by the effects studio, its owners or bosses, this was an effort by “the people” with a call out to fans to demonstrate why New Zealand was the right place to make “The Hobbit.” Just as the message was set to unleash on the world, Warner Bros announced its decision. But the video lives. Read on:
Hi all,
I’m sure everyone has heard the absolutely brilliant news that the Hobbit will now be staying in New Zealand. I firmly believe this is in no small part due to the massive show of support the public of New Zealand and the world, has shown over the past week. It truly is a tribute to what the filming of The Hobbit in New Zealand means to us all.
As part of the effort to keep the Hobbit where it belongs, we asked people to send in their videos of support. As a celebration of these messages, we have cut together a short film to thank not just those who sent in their videos but, everyone who showed their support at the march, the rally, on the facebook pages, in the Newspaper message, and in all the other forms people put their hand up for our cause. Thank you all!
The video is available for viewing on the YouTube channel where the videos were uploaded here:
http://www.youtube.com/watch?v=ciW7xzQb5S4
Cheers,
videosforclip
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