MGM Studios has new bosses calling the shots and the new restructuring plan includes a cash infusion of $500million keeping the doors open and hopes of bringing this studio back from the brink.
“Beginning today, MGM is a stronger, more competitive company, with a solid financial foundation and a bright future. MGM is emerging from one of the most challenging periods of its storied history. We are honored and inspired at the opportunity of leading one of Hollywood’s most iconic studios into its next generation of unforgettable filmmaking, global television production and distribution and aggressively pursuing, developing and exploiting new digital platforms.”
Now this sounds very noble and a lot of positive buzz is supposed to be generated here, but I wonder exactly how MGM is going to dig themselves out of this hole, even with new management by Spyglass entertainment founders Gary Barber and Roger Birnbaum.
The studio is approximately $5billion in debt, and they have been given $500million to fund their road to recovery.
Granted the studio still owns the rights to James Bond and The Lord of the Rings (which in turn means The Hobbit) so there is some potential money trucks there. But lets put this in real terms.
1.85 Avatars
2 Lord of the Ring Trilogies
2.7 Titanics
4.7 Toy Story 3’s
The First six Harry Potter Films
The Combined total of all 23 James Bond movies
Thinking of their debt with those numbers alone in consideration (not merchandising, DVD sales etc) it still seems that debt is unsurmountable.
My only hope for the studio is that they manage to continue producing the movies I want to see, or that those properties end up in the hands of someone who will respect them.
I honestly think this infusion of cash is just going to hold them on til they get things sorted out before they push daisies.
