MGM Holdings
Parent Amazon | | |
Subsidiaries | Metro-Goldwyn-Mayer | |
---|---|---|
Website | mgm | |
Footnotes / references [1][2][3] |
MGM Holdings, Inc. was an American holding company incorporated in Delaware and headquartered in Beverly Hills, California that launched on February 11, 2005 by a creditor-oriented consortium and the former parent company of Metro-Goldwyn-Mayer (from which the "MGM" initials were coined).[4][3] Technology company Amazon acquired the company on March 17, 2022 and later merged it with its Amazon Studios subsidiary on October 3, 2023, forming Amazon MGM Studios.[5]
History
MGM Holdings was formed by a
Attempted sale and bankruptcy protection
After being installed in August 2009 as MGM's new CEO, Stephen Cooper tried to convince MGM's lenders that they should restructure the company's long-term debt to allow the studio to continue with its current business model.[7] The lenders refused to do so and argued that a sale was the only way to recoup their investment.[7] Cooper agreed to conduct an auction to gauge the level of interest by potential buyers and the value of the assets for sale.[7]
On November 12, MGM announced it was "beginning a process to explore various strategic alternatives including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the company."
MGM also announced that its creditors agreed to a forbearance on the company's debt payments originally until January 31, 2010,[8][9][10][11] but the forbearance was extended to March 31.[12]
As of early December 2009, 16 companies had expressed interest in purchasing all or parts of MGM, although only two had actually negotiated a confidentiality agreement that would allow them to examine MGM's financial statements.[7] The Hollywood Reporter said Warner Bros., 20th Century Fox, and Lionsgate were the leading suitors for the company.[7] Industry observers worried, however, that buyers might only bid on a few of MGM's assets such as the James Bond film franchise or The Hobbit film which would draw bids of less than $1 billion.[7] At least one industry trade publication said creditors would accept offers amounting to $2 billion for parts or all of the studio.[7] Even a bid or bids totalling $1.8 billion might be accepted, industry observers said, if the buyer agreed to "schmuck insurance" (the right to convert debt to equity, under certain conditions and time-frames).[7] On December 18, press reports said that News Corporation's 20th Century Fox film studio had been interested in purchasing MGM, but it could not agree to the "restrictive" terms of MGM's nondisclosure agreement,[13] which in part do not permit potential buyers to speak with MGM's creditors.[14] The strict terms of the nondisclosure agreement also led two other potential buyers to refuse to participate, and several others were negotiating over the terms and unable to participate in the process. The due diligence process was "going slowly" one trade publication reported, with only four of the potential 20 companies participating as of December 18.[14]
MGM originally set January 15, 2010 as the deadline to receive bids from the companies interested in acquiring the studio.
MGM stated in February 2010 that the studio would likely be sold in the next four months and that Hot Tub Time Machine might be one of the last four films to bear the MGM name. However, some stated that the company might continue as a label for new James Bond productions, as well as other movie properties culled from the MGM library.[23] A few weeks later, MGM set March 19 as a deadline to receive bids from companies interested in acquiring the studio, including Time Warner and Lionsgate, although Time Warner was considered the most likely to buy the studio since its Warner Bros. catalog already included all the pre-May 1986 MGM titles originally acquired by Ted Turner.[24][25]
Eventually, MGM filed for Chapter 11 bankruptcy on November 3, 2010[26][27] and emerged on December 2 when the Federal Bankruptcy Court approved MGM's reorganization plan, which led to MGM's creditors taking over the company.[28][29][30][31] On December 17, the company laid off about 50 staff members.[32][33]
Creditor group ownership
Following the emergence from bankruptcy, MGM's secured lenders, which include
A late 2011 financial report revealed that MGM had acquired Tom Cruise's 30% stake in United Artists and once again owned 100% of UA.[38]
In May 2012, MGM sold its minority non-voting shares of
In September 2014, MGM acquired a 55% interest in One Three Media and Lightworkers Media, both operated by Hollywood producers Mark Burnett and Roma Downey. The two companies, along with UA, were consolidated into a new film and television company known as United Artists Media Group.[44] On December 14, 2015, MGM announced that it had acquired the remaining 45% stake of UAMG it did not yet own. Downey and Burnett will receive stakes in MGM collectively valued at $233 million with Hearst receiving cash. Additionally, Burnett was promoted to CEO of MGM Television, replacing the outgoing Roma Khanna. The planned faith-based entertainment service will become a separate entity owned by MGM, Burnett, Downey, and Hearst.[45]
In October 2017, MGM's board renewed Gary Barber's contract as chairman and CEO until December 2022. In February 2018, Chris Brearton, the former media M&A attorney of
In July 2018, MGM reset its debt capital structure to $2.5 billion which lowered the borrowing rate as MGM paid off the prior loan facility. This despite Moody's Investor Service reducing MGM on two key ratings because of increased TV spending and the departure of fiscally conservative Barber as CEO.
Sale to Amazon
In December 2020, MGM began to explore a potential sale of the studio, with the
Assets
MGM Holdings directly or indirectly owns and controls about 160 affiliates, with the most notable being the following group companies:[64]
Final holdings
Film Production and Distribution
Television
- MGM Television
- Big Fish Entertainment LLC
- Evolution Media (Evolution Film & Tape, Inc.)
- Gato Grande Productions (joint venture with Mexican entrepreneurs Miguel Aleman and Antonio Cué)
- Orion TV Productions, Inc.
- Lightworkers Media
- Channels
- Impact (joint venture with Comcast)
- )
- Telecine Action
- Telecine Cult
- Telecine Fun
- Telecine Pipoca
- Telecine Premium
- Telecine Touch
- Telecine Productions
- Telecine On Demand
- Telecine Play
- )
- MGM Sci-Fi (Roku linear channel)
Other assets
- MGM Consumer Products
- MGM Music
- MGM Sports
- MGM On Stage
Former
- MGM Animation
- MGM Interactive
- MGM Networks
- The Works
- MGM HD
- LAPTV (Jointly owned by 20th Century Fox and Paramount Pictures)[39]
- Cinecanal
- The Film Zone
- Movie City
- Rainbow Media, now AMC Networks (20%)
- Carolco Pictures (15%)
- Comet (owned by Sinclair Broadcast Group)
- Charge! (owned by Sinclair Broadcast Group)
- This TV
- Light TV
- MGM Home Entertainment
- United Artists
- MGM Digital
- Stargate Command – streaming service
- United Artists[65]
- United Artists Releasing (distribution joint venture with Annapurna Pictures)[66]
See also
References
- ^ a b "MGM Disclosure Statement". p. 6. Archived from the original on January 24, 2012. Retrieved January 21, 2016.
- ISBN 0743204816.
- ^ a b "Annual Financial Reports 2017" (PDF). mgm.com. MGM Holdings, Inc. Archived (PDF) from the original on August 28, 2021. Retrieved October 16, 2018.
- ^ a b "MGM Files for Chapter 11 Bankruptcy". November 3, 2010. Archived from the original on October 21, 2012. Retrieved September 24, 2012.
- ^ a b Maas, Jennifer (March 17, 2022). "Amazon Closes $8.5 Billion Acquisition of MGM". Variety. Archived from the original on April 4, 2022. Retrieved March 17, 2022.
- ^ "Consolidated Financial Statements for the year ended March 31, 2008" (PDF). Sony. June 3, 2008. Archived (PDF) from the original on October 3, 2021. Retrieved January 21, 2016.
- ^ a b c d e f g h DiOrio, Carl (December 7, 2009). "MGM sale expects to elicit half-dozen bids". The Hollywood Reporter. Archived from the original on December 13, 2009. Retrieved January 21, 2016.
- ^ a b c McNary, Dave (November 13, 2009). "MGM officially on the block". Variety. Penske Media Corporation. Archived from the original on November 19, 2009. Retrieved August 6, 2014.
- ^ a b Kilday, Gregg (November 13, 2009). "Lenders extend deadline for MGM payments". The Hollywood Reporter. Archived from the original on January 9, 2010. Retrieved January 21, 2016.
- ^ a b c d e Barnes, Brooks (November 13, 2009). "Burdened by Debt, MGM to Seek a Buyer". The New York Times. Archived from the original on December 15, 2017. Retrieved February 25, 2017.
- ^ a b c Claudia Eller (November 12, 2009). "Lions Gate (and every other media company) says it would buy MGM at right price". Los Angeles Times. Archived from the original on May 6, 2014. Retrieved August 6, 2014.
- ^ Horowitz, Lisa (January 29, 2010). "MGM Debt Repayment Deadline Extended to March 31". TheWrap. Archived from the original on February 2, 2010. Retrieved December 15, 2011.
- ^ "News Corp. talks to acquire MGM reach impasse". Los Angeles Times. December 18, 2009. Archived from the original on August 12, 2014. Retrieved July 20, 2014.
- ^ a b Das, Anupreeta (December 17, 2009). "MGM sends out prospectus, process going slow: sources". Reuters. Archived from the original on January 23, 2010. Retrieved August 6, 2014.
- ^ Daswani, Mansha (January 7, 2020). "January 15 Deadline Set for MGM Bids". World Screen. Archived from the original on January 20, 2010. Retrieved July 20, 2014.
- ^ DiOrio, Carl (June 1, 2010). "MGM likely to draw bids as deadline looms". The Hollywood Reporter. Archived from the original on January 17, 2010. Retrieved July 20, 2014.
- ^ Forrester, Chris (January 12, 2010). "MGM bids attracts Hollywood". Rapid TV News. Archived from the original on January 23, 2010. Retrieved January 21, 2016.
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- ^ White, Michael (January 30, 2010). "News Corp. Said to Offer Cash, Debt Help to Keep MGM Running". BusinessWeek. Bloomberg L.P. Archived from the original on April 16, 2011. Retrieved January 30, 2010.
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- ^ McNary, Dave (March 8, 2010). "McNary, Dave. "MGM sets deadline for receiving bids" Variety. March 8, 2010". Variety. Archived from the original on April 13, 2010. Retrieved December 15, 2011.
- ^ DiOrio, Carl (October 13, 2010). "MGM sets deadline for updated bids". The Hollywood Reporter. Archived from the original on March 12, 2010. Retrieved December 15, 2011.
- ^ "MGM Officially File For Bankruptcy". The Hollywood News. November 3, 2010. Archived from the original on January 4, 2022. Retrieved August 6, 2014.
- ^ McNary, Dave (November 4, 2010). "Judge OKs MGM bankruptcy motions". Variety. Archived from the original on January 16, 2013. Retrieved July 20, 2014.
- ^ "M.G.M. Wins Approval of Bankruptcy Plan". The New York Times. December 2, 2010. Archived from the original on August 11, 2014. Retrieved July 20, 2014.
- ^ McNary, Dave (December 2, 2010). "MGM reorganization plan OK'd". Variety. Archived from the original on January 16, 2013. Retrieved July 20, 2014.
- ^ Humer, Caroline (December 2, 2010). "MGM studio's bankruptcy plan wins judge's approval". Reuters. Archived from the original on December 5, 2010. Retrieved July 20, 2014.
- ^ "Judge Approves MGM Bankruptcy Plan". Hollywoodreporter.com. Archived from the original on April 26, 2014. Retrieved July 20, 2014.
- ^ THR Staff (December 17, 2010). "MGM Lays Off Dozens of Staffers Friday". The Hollywood Reporter. Archived from the original on April 26, 2014. Retrieved July 20, 2014.
- ^ McNary, Dave (December 17, 2010). "MGM slashes staff ahead of bankruptcy exit". Variety. Archived from the original on January 16, 2013. Retrieved July 20, 2014.
- ^ "MGM Holdings II Inc Info". Archived from the original on January 25, 2013. Retrieved January 5, 2012.
- ^ "Voluntary Petition" (PDF). Courthouse News. October 31, 2010. Archived (PDF) from the original on April 11, 2016. Retrieved January 21, 2016.
- ^ Fleming, Mike (December 23, 2010). "MGM Sets Ex-Pixar CFO Ann Mather To Head New Board of Directors". Deadline. Archived from the original on November 1, 2013. Retrieved January 21, 2016.
- ^ Finke, Nikki (December 29, 2010). "Official: MGM Moving Into Office Building Once Intended For William Morris Agency". Deadline. Archived from the original on July 5, 2014. Retrieved January 21, 2016.
- ^ Fritz, Ben (March 23, 2012). "MGM regains full control of United Artists". Los Angeles Times. Archived from the original on March 25, 2012. Retrieved April 17, 2020.
- ^ a b "FOX International Channels to Acquire Additional Stake in LAPTV from MGM". FOX International Channels website. May 22, 2012. Archived from the original on February 14, 2013. Retrieved October 10, 2013.
- ^ "Icahn sells MGM stake for $590 million". L.A. Biz. August 1, 2012. Archived from the original on January 27, 2021. Retrieved January 21, 2016.
- ^ "MGM Said to Plan a Buyout of Icahn's Stake". The New York Times. July 31, 2012. Archived from the original on October 14, 2012. Retrieved September 24, 2012.
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- ^ Ben Fritz (August 1, 2012). "MGM sells overseas channels amid Icahn buyback, IPO preparation nyt". Los Angeles Times. Archived from the original on January 20, 2016. Retrieved January 21, 2016.
- ^ Fleming, Mike Jr; Busch, Anita (September 22, 2014). "MGM Buys 55% Of Roma Downey And Mark Burnett's Empire; Relaunches United Artists". Deadline. Penske Business Media. Archived from the original on October 21, 2014. Retrieved November 4, 2014.
- ^ "Mark Burnett Named President of MGM Television". Variety. December 14, 2015. Archived from the original on August 27, 2017. Retrieved December 14, 2015.
- ^ McNary, Dave (March 20, 2018). "MGM Shakeup: Gary Barber Out as CEO". Variety. Archived from the original on March 20, 2018. Retrieved March 20, 2018.
- ^ Busch, Anita (March 20, 2018). "Behind The MGM Shakeup Shocker! What Happened To Instigate MGM Chairman/CEO Gary Barber's Ouster?". Deadline. Penske Business Media, LLC. Archived from the original on March 20, 2018. Retrieved March 21, 2018.
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- ^ a b Masters, Kim; Siegel, Tatiana (January 8, 2020). "MGM Executive Shake-Up Could Foreshadow Bigger Changes at Storied Studio". The Hollywood Reporter. Archived from the original on March 2, 2020. Retrieved March 5, 2020.
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