Entertainment

The MGM, its 4000 films and its James Bond for sale: 5.5 billion dollars, price to be discussed


In financial difficulty, the Hollywood studios of Metro Goldwyn Mayer have tasked two investment banks to find buyers.

According to Wall Street Journal, Metro-Goldwynn-Mayer is said to have decided to find new buyers. In financial difficulty, the Hollywood studio has recruited two investment banks to carry out this mission. Morgan Stanley and LionTree LLC were said to have been tasked with exploring avenues for a takeover of the studio valued at around $ 5.5 billion, including 2.3 billion in debt.

MGM believes it can generate interest beyond the usual Hollywood investors (media, private equity investors, etc.), a source familiar with the matter told Wall Street Journal. In the first line, streaming platforms, which the catalog of 4,000 cinema titles and more than 17,000 hours of television productions should be of interest. In recent months, Anchorage, MGM’s main shareholder fund, has sought to pull out. Its CEO, Kevin Ulrig, and also chairman of the board of directors of MGM, had cited Apple and Amazon, but also Facebook or Comcast as potential buyers of one of the five big Hollywood studios, founded in 1924, which is notably at the heart of the plot of Mank, David Fincher’s latest film.

The rights to the James Bond franchise should be used as a lead product to find a buyer. In collaboration with Eon productions, the series will reach its 25th film with To die can wait. He has been delayed several times due to the health crisis. Entangled in a difficult financial situation, the MGM would have also sought, according to Bloomberg, to sell the last film of Daniel Craig in 007 to streaming platforms. Netflix, Apple and other streaming services were takers. But the selling price, estimated at 600 million dollars, according to Bloomberg, would have cooled more than one. Nothing finally came to pass.

The firm also holds the licenses of Rocky, of The Hobbit, from the Serie Handmaid’s Tale or from tomb Raider. Acquiring the MGM would be the assurance of exploiting a rich catalog in the future. Will Netflix or Apple TV + position themselves to fuel their subscriber base? Who from Warner Bros or Disney? The potential sale of MGM comes in the midst of a content bidding war. Its realization would make MGM the first major studio to be swept away by the pandemic – in addition to past debts. Unlike Disney or Warner Bros, the studio does not have a streaming platform to consider the future in front of screens other than those of the cinema.

.

Leave a Reply

Your email address will not be published. Required fields are marked *