MGM gets new CEO

[Spaceman XIII]

http://www.firstshowing.net/2010/10/07/mgm-finally-recovering-votes-in-spyglass-execs-as-new-heads/

MGM Finally Recovering, Votes in Spyglass Execs as New Heads

October 7, 2010
Source: indieWIRE
by Alex Billington

Its been more than a year since it was first revealed that legendary movie studio MGM was going bankrupt and in need of financial support. We've covered occasional news stories about them ever since, but most of it has been business talk about getting financiers. The studio isn't out of Chapter 11 bankruptcy yet, but they have finally, officially announced that Spyglass Entertainment execs Gary Barber and Roger Birnbaum will take over as co-chairman and CEO. The announcement was made by MGM, so it isn't premature news like with Miramax. Details are still being worked out, but this is the next big step for the struggling studio.

Here are some of the key details from today's press release: "The Plan provides for MGM’s secured lenders to exchange more than $4 billion in outstanding debt for approximately 95.3% of equity in MGM upon its emergence from Chapter 11… Gary Barber and Roger Birnbaum, currently Co-Chairman and Chief Executive Officer of Spyglass Entertainment, would serve as the Co-Chairman and Chief Executive Officer of MGM following the company's emergence from Chapter 11." So Spyglass (at least a few of its execs), which helped develop movies like Evan Almighty, Balls of Fury, The Ruins, The Happening, Wanted, Four Christmases, Star Trek, G.I. Joe: The Rise of Cobra, Get Him to the Greek, Dinner for Schmucks and The Tourist, will be taking over the legendary Metro-Goldwyn-Mayer. Things are changing in Hollywood and this is huge news.

MGM's plan is a "reorganization plan" which means there will be some big changes at MGM once Barber and Birnbaum take over. We're not exactly sure what this means for the future of the James Bond franchise and projects like The Hobbit, but I think this is at least a big first step in getting the studio on the right track again. They're still in need of financing to pay off all of their debt and I'm sure some of that involves figuring out how to come up with half of the $500 million budget of The Hobbit. We'll keep you updated on MGM's situation, including specific plans for the new studio once Barber and Birnbaum move in. If you want more information on this news specifically, you can read the reports on indieWIRE or ComingSoon. Stay tuned!

 

[Spaceman XIII]

MGM Files for Bankruptcy; Spyglass Entertainment To Take Over

http://screenrant.com/mgm-bankruptcy-spyglass-entertainment-schrad-82006/

Spyglass CEOs have been put in charge of MGM, and details of their reorganization plan have emerged – but what does this mean for films like ‘The Hobbit’ and ‘Bond 23?’

MGM’s financial woes have continually spiraled from bad to worse for the better part of a year and in light of these setbacks, the future of tentpole films like The Hobbit and Bond 23 were called into question. Instead of financing these high profile projects, MGM was forced to put the money towards their $4 billion debt.

Since late June, Spyglass Entertainment CEOs Gary Barber and Roger Birnbaum have been discussing a reorganization plan with MGM that would begin with the studio filing for a prepackaged Chapter 11 Bankruptcy. The court process would last around 30 days and then Barber and Birnbaum would take the reigns as the new owners of MGM.

According to Deadline, these events have been set in motion and MGM has begun taking the important first steps towards reinventing itself. Barber and Birnbaum’s plan still has to be approved by a hundred or so creditors and would see the legendary studio minimized into a production company worth around $1.9 billion ($3 billion less than MGM’s price tag back in 2005). Creditors would receive 95% of the studio’s equity after it emerges from bankruptcy.

They have until October 22nd to vote on the plan, but with MGM’s largest creditors already voicing their support, there doesn’t seem to be any reason to believe it won’t be approved.

Spyglass and two of its subsidiaries would merge into MGM and control the remaining 5% of the company. Spyglass would also contribute fifteen of its titles (including The Sixth Sense, Bruce Almighty, and Seabiscuit) to MGM’s catalog of nearly 4,000 films.

But what does this arrangement mean for The Hobbit and Bond 23? Obviously those films are a high priority for MGM and a big part of helping them get back on their feet. After a string of box office disappointments, there’s no way they’re going to give up on two of their biggest brands.

So while it’s now a matter of when and not if we’ll see them made, there probably won’t be any sort of formal announcement on either project until December at the very earliest. While this certainly wasn’t the only road block facing The Hobbit, it was definitely the largest. Hopefully this is the first of many breaks Peter Jackson’s seemingly cursed adaptation is afforded.

As for Bond, Daniel Craig and director Sam Mendes indicated they would likely return once MGM was back on track and I hope that’s still the case. I’m dying to see what a Mendes directed/Peter Morgan scripted Bond film looks like.

The new MGM would aim for six major theatrical releases a year and also place a renewed interest in cable television – both scripted and reality programming. Interestingly, this strategy includes plans to turn several existing MGM films into TV shows. RoboCop, The Silence of the Lambs, and Dances with Wolves are all specifically mentioned.

Spyglass has an proven track record in Hollywood having co-financed hits like Star Trek, Wanted, Four Christmases, and G.I. Joe: The Rise of Cobra. So while MGM isn’t in the clear just yet, they at least appear to be in good hands with some light at the end of the tunnel.

Source: Deadline

 

[Spaceman XIII]

Looks like the new heads at least understands the concept of real Sci-Fi, hopefully they'll give Syfy a kick in the teeth and cut all the losses like SGU.

 

[Robbie_Rocket_Pants]

Yeah last week I read this in the newspaper but was devastated that I couldn't get to an internet capable computer to post about it.