MGM of 1968 or MGM of Time-Warner-Turner media empire today?
MGM of, I guess, Time-Warner-Turner.
MGM kept accumulating debt to the tune of some $7B from what I understand. They kept using their DVD sales and other revenue (like cable on demand services) as a green light to keep piling on debt (i.e. to produce modern garbage, they relied on sales of their classic films). About a year ago, they kind of learned that they could no longer afford even interest payments on that debt.
End result is that the company is now up on the auction block. Some of the best offers they have been getting is in the $1B region. This has also halted production of some of their big money features like James Bond and the prequel to the Lord of the Rings (”The Hobbit”, but I am sure everyone knows that :-) ). They do not have the cash to produce these.
I know $1B is not chump change, but it kind of is from a former valuation of just under 7x that amount.
MGM of, I guess, Time-Warner-Turner.
MGM kept accumulating debt to the tune of some $7B from what I understand. They kept using their DVD sales and other revenue (like cable on demand services) as a green light to keep piling on debt (i.e. to produce modern garbage, they relied on sales of their classic films). About a year ago, they kind of learned that they could no longer afford even interest payments on that debt.
End result is that the company is now up on the auction block. Some of the best offers they have been getting is in the $1B region. This has also halted production of some of their big money features like James Bond and the prequel to the Lord of the Rings (”The Hobbit”, but I am sure everyone knows that :-) ). They do not have the cash to produce these.
I know $1B is not chump change, but it kind of is from a former valuation of just under 7x that amount.