TheOneRing.net message board member (and director of films that win like – you know – Academy Awards) Guillermo del Toro chimed in today to elaborate a bit on the seemingly eternal pre-pre-production state of a pair of “Hobbit” films and the MGM situation.
Chatting up the regulars he said:
But know these facts:
-NO delays have been caused by “discussing” or “adapting” 3-D.
-Can’t close deals with actors without a green light.
-Can’t give a green light to the project when one of the studios is going through a “to be or not to be” auction moment.
For good or bad this project has demanded for so much to be solved before it gets going. So, the Phil Connors syndrome is met with great empathy.
Best
GDT
Yep, he referenced the “Groundhog Day” movie while confirming and elaborating on this report. The MGM situation and the two “Hobbit” films’ fate are bound together like Frodo, Gollum and soul-stealing jewelry. (We are hoping they avoid the whole volcano thing though.)
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After the debtholders of MGM’s $3.7 billion extended its payment deadline for the fourth time (yes fans, that might mean more delays to the much pined-for “greenlight”) Wired.com posts a story that says historic Metro-Goldwyn-Mayer studio might sell off “The Hobbit” franchise and that Warner Bros. is interested in buying. James Bond is another of the studio’s potentially hot tickets that is also for sale. The whole story can be read here.
We have an alternative for the debtholders: Greenlight two “Hobbit” films already! Tell MGM to pony up its half of the production budget, trust the talent of Guillermo del Toro, the Middle-earth experience of Peter Jackson, the wizardry of Weta (you know, those one guys who made that fairly popular “Avatar” flick) hire the right cast and get cameras rolling! Since potential buyers are offering you pennies on the dollar, raise the value of the studio not by sitting around looking desperate but by making money. That goes for James Bond too.
Nobody at TORn claims to be a movie mogul but two “Hobbit” films represent $2 billion in box office at least. MGM’s share of that might take might ease some pain and give hope for the future. Ditto James Bond. -sigh-
Thanks to Ringer Spy Bidu for the spare eyeball.
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Message board members Pipe Dream and macfalk have unearthed more breaking news regarding MGM’s financial woes. A Business Week/Bloomberg update announced that billionaire Len Blavatnik’s Access Industries may drop out of the bidding, having received no response to-date from MGM or its creditors regarding its restructuring proposal. Another interesting development was published today at Variety: with MGM’s latest extension on its debt servicing payment scheduled to run out today, MGM’s creditors granted yet another extension; this one for 45 days (expiring May 14).
From both articles: lenders have deemed the current offers too low, a person with knowledge of the deliberations said last week. MGM debtholders are said to be split into two camps — one that wants to accept the best offer; and the other that wants to prolong the process in hopes of keeping the studio alive. The remaining binding offers for MGM are believed to be in the $1.5 billion range, far below the $2 billion threshold price sought by MGM and its debtholders. MGM put itself up for sale in November, drawing a trio of binding offers two weeks ago. Lionsgate bailed out of the bidding last week, leaving only Time Warner and Len Blavatnik’s Access Industries in the running.
As we reported in this TheOneRing.net exclusive, inside sources tell us that moving forward with production of The Hobbit hinges on developments with MGM. So stay tuned here as we continue following the MGM saga closely.
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Time Warner Inc, Lions Gate Entertainment Corp and billionaire Len Blavatnik’s Access Industries put up rival bids of $1.2 billion to $1.5 billion for studio Metro-Goldwyn-Mayer, sources familiar with the matter, told Reuters on Monday.
Time Warner put in the highest bid of the three, the sources said. The company has been seen as most likely to walk away with MGM and its library of mostly classics, such as the James Bond franchise and a piece of the two “Hobbit” films to be produced by “Lord of the Rings” director Peter Jackson. More
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Time Warner Inc. might offer as much as $1.5 billion dollars for MGM, according to Bloomberg News. What do you get for that? Well, a 4,100-title library, the James Bond franchise, the Pink Panther franchise, part of the upcoming Hobbit movie, some television channels, and the rights to the show Stargate. More..
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The auction of MGM has entered its second round of bidding, with approximately half a dozen potential buyers being invited back to the table. This news, courtesy of THR, comes a month after we reported that MGM lenders are growing restless with the pace (and low bid offers) of the auction. MGM is of course facing new ownership and/or restructuring, due to its massive debts.
Second round bidders include Time Warner, Lionsgate, Liberty Media and Summit Entertainment (to name a few). MGM’s financial consultant, Moelis & Co., is trying to get a quality bid on the table this month, as MGM has a big payment due to lenders on March 31st. More..
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