MGM’s financial woes have dragged on for months, with absolutely no sign of coming to an end. While the studio has been up for sale since the end of last year, nobody’s come forward offering enough cash and so the deadline for bids has been continually pushed back.
Now The Financial Times (via Deadline) is reporting that Tony and Ridley Scott are interested in steering MGM back to solvency after submitting a restructuring plan to the studios lenders.” While giving filmmakers the run of a studio hasn’t worked out too well in the past (for example, MGM handed Tom Cruise United Artists, and so far he’s only managed to produce a couple of flops), the Scott Brothers are something a little bit different. As well being successful directors and producers, they’re also heavily involved in making TV series (Numb3rs, The Good Wife), and have an extremely sound grounding in the economics of the industry, having run the ridiculously successful advertising agency RSA for years.
To be honest, if you’re going to have any filmmakers running your studio, these are the guys you want. The assumption is that, if MGM emerges from the busted auction as a stand-alone and restructured company, a new management team will be brought in to run the studio once its fate is determined by creditors. “The Scott brothers have their own production company, Scott Free, but it is unclear whether their proposal would involve combining it with MGM, or if they are seeking a stake in the recapitalised studio.”
Incidentally, the other studio that’s currently up for sale, Miramax, is reportedly entering the stage where Disney has received offers (the LA Times says there are three main bidders) and is weighing them against one another, with a decision expected shortly. However it’s believed nobody has offered the $700 million asking price, with some suggesting the mixed bag of films in the studio’s back catalogue is the main reason for this.