In late December 2010, MGM studios completed bankruptcy proceedings and are now moving forward with a restructuring plan led by the co-CEO’s from Spyglass, Barber and Birnbaum. MGM has seen some employee attrition and also laid off 50 employees.
There is some speculation on which movies MGM will fund, given that they are in a 50/50 deal with WB for “The Hobbit” and Bond 23.
Additionally, Lionsgate is still pursuing legal action against Carl Ichan in his failed take over bid from late October. Ichan is still a major shareholder in both studios having participated in the MGM pre-packaged bankruptcy process.
I’m sure we will hear more as the legal court drama unfolds!
The box office hasn’t always been so nice to leading ladies in movies. In fact, female consumers aren’t always lining up to buy tickets to chick flicks either. Looking over the numbers there are a few themes that emerge for leading ladies to cash in at the box office.
At risk of starting off with too many clichés, leading ladies are being typecast. Whether that is because it’s a successful formula or playing to what fans will buy I think that could be argued in both directions. While pouring over the numbers women appear to have box office success three ways: being placed in a particular part – typecasting, or landing in a specific story line or becoming part of an ensemble cast. However, there is no argument that Hollywood is a business and businesses must make money. Continue reading
The ongoing story of the fate of MGM Studios is now in the hands of the US District Court judge in NYC. MGM filed for chapter 11 bankruptcy reorganization last week, Continue reading
In an interesting week of daily news reports regarding the fate of MGM studios, it appears that the pre-packaged bankruptcy deal has been approved today by the current holders of MGM’s $4 bill debt. The vote effectively joins Spyglass and MGM studios and will be directed by co-CEO’s from Spyglass management. Continue reading
In yet another move today, it has been reported that billionaire investor Carl Icahn has extended his buyout offer to LionsGate shareholders until November 1. This move by Icahn as LionsGate’s primary shareholder places more pressure on MGM. Recall this week, the offer by Icahn to purchase outstanding debt from MGM and consolidate the two studios.
Both offers still on the table looking for shareholder and debtholder agreements extended until the end of the month. Lionsgate shares remained unchanged in early trading on today’s market.