MGM may be the best known logo in the entertainment business, but the company seems headed for another possible garage sale. Several sources say they expect that MGM will essentially be auctioned off within the next few weeks. This would mean that a major, such as Time Warner, could buy the MGM-UA library while another entity might acquire the logo, and yet another deal could be made for United Artists. Sources speculated that Kirk Kerkorian, who has already bought and sold MGM twice, might buy the logo once again.
Last summer Harry Sloan was bounced as MGM’s CEO and Stephen Cooper, a specialist in restructuring companies (Krispy Kreme was one of his projects) started meeting with bankers with the aim of restructuring some $3.7 billion in debt. There was speculation that the combined assets of MGM may now yield as little as $1.5 billion in the present market. More..
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The Noldor Blog reports some big changes around Jackson’s Stone St Studios, with what looks like the beginnings of a huge new structure to replace one of the existing sheds. Read More
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Thanks to many of you for pointing us to this story at The Hollywood Reporter: MGM has secured support from key lenders to allow the studio enough cash to proceed with its participation in “The Hobbit.” A recent proposal by MGM’s new CEO Steve Cooper to defer interest payments on its debt load for the next three months on Thursday won a crucial endorsement from J.P. Morgan.
Concern over MGM’s hold on “Hobbit” is at the heart of the activity. In a 50-50 rights partnership with Warner Bros.’ New Line unit, two “Hobbit” pics are being developed. The first “Hobbit” aims for theatrical release in 2011, with Guillermo del Toro on board to direct that and a sequel. Peter Jackson, Fran Walsh, Philippa Boyens and del Toro are writing scripts for both and are expected to deliver the first screenplay by the end of November. Read More
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MGM’s financial woes continue to worsen according to Nikki Finke over at Deadline Hollywood. MGM had a conference call yesterday with its bond holders for the benefit of the lenders: “MGM made a desperate plea for money because the studio had missed its numbers and was going to be out of funds very soon. “The implication was that it’s teetering on bankruptcy,” one source told me. MGM said it needed $20M in short-term cash flow to cover overhead, and an additional $150 million to get through the end of year and continue funding its projects, and to start Peter Jackson’s Hobbit.” Read More
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News is all over the place today about changes at the top of MGM, one of the studios co-financing and co-producing “The Hobbit.” There are lots of stories that tackle the business side of things. The New York Times takes a crack as does the L.A. Times while The Wrap looks at a possible takeover while Variety looks at Hollywood’s reaction and The Geek FreePress examines what it might mean for “The Hobbit,” calling this change the possible dragon for the film.
Kristin Thompson also weighed in with two seperate blog posts found here and here.
If anybody in our spy network has any further info of what this might mean, please send us word at SpyMaster@TheOneRing.net.
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There is a very informative article in the Wall Street Journal today that covers the past and upcoming projects of Peter Jackson. There is a particularly interesting tidbit on his decision to not direct ‘The Hobbit’ flims:
Mr. Jackson is co-writing and producing an adaptation of J.R.R. Tolkien’s “The Hobbit,” but he’s handing the directing reins to Guillermo del Toro, known for his fantastical hit “Pan’s Labyrinth.”
“In some respects, I’m still not sure if I made the right decision in not directing, because I’m enjoying it so much,” Mr Jackson says of “The Hobbit.”
Thanks to forum member Loresilme for the heads up and you can read the full article through the following link. [Read More]
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