MGM is a sinking ship despite having lucritive franchises like James Bond and The Hobbit to fill its leaky coffers, but it seems that director brothers Ridley and Tony Scott are interested in running MGM.
Directors/Producers/Brothers Ridley and Tony Scott are reportedly interested in taking the reins at financially troubled MGM. According to the Financial Times [via Deadline], the brothers may take the reins at the company, which is currently $3.7 billion in debt, but also owns high-value properties The Hobbit and the James Bond franchise.
The Scott Brothers already have their own production company, Scott Free, and it’s currently unclear if that would be folded into MGM or if the brothers are looking for a stake in a recapitalized studio.
I am encouraged that these guys are taking interest in MGM, but I am puzzled why ANYONE would want to take on the debt burdened studio.
I think it would make far more sense for them to make a generous offer for their catalogue and move the big properties like Bond or The Hobbit under their own banner.
We will have to wait and see how this goes.
So shouldn’t the companies that own MGM be paying that debt?
Didn’t Sony buy MGM years ago?
Sony is part of the Consortium that owns MGM along with a half a dozen other companies.
I’m a film student and I know this is gonna reflect Superbad-ly (see what I did there?) on me, but can someone explain how this studio business works?
I mean, how can an ages old company, with Kick-Ass (again?) movies under its belt be so debt ridden? The Bond franchise is a cash cow that will probably be milked forever. It owns the UA catalogue (most of it), its own catalogue post the late 80’s, a substantial bunch of the Castle Rock catalogue, Ben Hur, and a shit-ton of other stuff be so debt ridden? What’s causing the debt, basically? Movies that didn’t make money or bad investments or bad management or what?
The problem with 3.7B in debt is: That debt has to be serviced. If the debt is financed at just 5% that is $185M per year (without paying down the debt). Because many of the MGM previous management borrowed against that back catalog, they are now saddled with that debt. Forgive me if I’m wrong, but 3.7B is not even the original debt amount as the company restructured some of the debt in a Bankruptcy.
Ah, actual filmmakers coming around to possibly running a studio.
Say amen, brothers and sisters. Say amen.
If this goes down, I see nothing but a win here. I support this possible move. It won’t happen overnight, but I think the Scott brothers can breathe a little life into the Lion.