On the hook for hundreds of millions in debt, Metro-Goldwyn-Mayer Studios avoided a massive headache Wednesday when its debt-holders agreed, for the fourth time, to extend a deadline for repayment.
Eventually the movie studio will have to pay the piper, and might have to sell off its stake in The Hobbit and James Bond franchises to do so.
According to The Hollywood Reporter, MGM has received underwhelming bids for the studio and its title-rich library, and may have to resort to selling off lucrative series piecemeal.
The last Bond entry, Quantum of Solace, took in more than a half-billion dollars worldwide, while Peter Jackson and Guillermo del Toro's forthcoming Hobbit duology is expected to blow way past that. Warner Bros. is reportedly interested in buying out MGM's half of The Hobbit, while Sony is intrigued by 007's past and future spy films. But selling off its two fattest paydays could backfire, especially since MGM is on the hook for $3.7 billion. Unless the studio comes up with more blockbusters, it might be lights out for the Lion.
So let's play entertainment mogul. Would you sell equity stakes in The Hobbit and the James Bond franchise, or look elsewhere for financial aid? (Maybe it's time to cook up a quick sequel to The Wizard of Oz.) Let us know your power plays in the comments section below.
Image courtesy Wikipedia
See Also:
