Oh how the mighty have fallen. It’s incredible to think that MGM was once the mightiest of all the studios. Now, after two decades of mergers, near collapses, last minutes rescues and other problems, it’s facing problems again. With debts of almost $4 billion, it’s been having problems releasing enough successful films to keep it creditors happy and is seeking to restructure its debt in order to stave off bankruptcy.
Part of MGM’s problem is that in the early 80s some odd takeovers left MGM without most of its back catalogue of movies. They were taken off by Ted Turner and are now owned by Warner (hence why MGM films like Gone With The Wind and The Wizard Of Oz are brought out on DVD by Warner), which means they’re far more reliant on new films being a success than other studios, as they don’t have as big a back catalogue as other studios.
However many are suggesting that the ace in MGM’s hole is 007, which it’s managed to keep since its merger with United Artists. The value of that franchise is so enormous that some investors still reckon it’s worth saving MGM from bankruptcy because no matter what else happens, the double agent is worth billions.
At the moment the company is desperately trying to reorganise its debt and it looks certain that some sort of restructuring will be necessary, even if 007 can save it from going under completely.