MGM was formed byMarcus Loew by combiningMetro Pictures,Goldwyn Pictures andLouis B. Mayer Pictures into one company.[2][3] It hired a number of well-known actors as contract players—its slogan was "more stars than there are in heaven"—and soon became Hollywood's most prestigious filmmaking company, producing popularmusical films and winning manyAcademy Awards. MGM also owned film studios, movie lots, movie theaters and technical production facilities. Its most prosperous era, from 1926 to 1959, was bracketed by two productions ofBen Hur. It divested itself of the Loews movie theater chain and, in 1956, expanded into television production.
In 1969, businessman and investorKirk Kerkorian bought 40% of MGM and dramatically changed the operation and direction of the studio.[4] He hired new management, reduced the studio's output to about five films per year, and diversified its products, creatingMGM Resorts International as aLas Vegas–basedhotel and casino company. In 1980, the original incarnation of MGM spun off its studio division to focus on its hotels and resorts, rebranding the company toMetro-Goldwyn-Mayer Film Co. and in the following year, the studio acquiredUnited Artists (UA). In 1986, Kerkorian sold MGM toTed Turner, who retained the rights to the MGM film library, sold thestudio lot in Culver City toLorimar, and sold the remnants of MGM back to Kerkorian a few months later. After Kerkorian sold and reacquired the company again in the 1990s, he expanded MGM by purchasingOrion Pictures andthe Samuel Goldwyn Company, including both of their film libraries. Finally, in 2005, Kerkorian sold MGM to aconsortium that includedSony Pictures.
MGM was listed on theNew York Stock Exchange until 1986 when it was sold to Turner. The company had its third IPO on the same exchange in 1997.[5]
In 2010, MGM filed forChapter 11 bankruptcy protection and reorganization.[6][7] After reorganization, it emerged from bankruptcy later that year under its creditors' ownership. Two former executives atSpyglass Entertainment,Gary Barber andRoger Birnbaum, became co-chairmen and co-CEOs ofMGM's new holding company.[8] After Barber's departure in 2018, the studio sought to be acquired by another company to pay its creditors.[9] In May 2021, Amazon acquired MGM forUS$8.45 billion;[10] the deal closed in March 2022.[11] In October 2023, Amazon Studios absorbed MGM Holdings and rebranded itself as Amazon MGM Studios.[12] As of 2023, its most commercially successful film franchises includeJames Bond andRocky, while its most recent television productions includeFargo andThe Handmaid's Tale.
As a subsidiary of Amazon MGM Studios, MGM is a member of theMotion Picture Association (MPA); it was a founding member before leaving in the 2005 acquisition.
Overview
MGM was the last studio to convert to sound pictures—nonetheless, from the end of thesilent film era through the late 1950s, it was the dominant motion picture studio in Hollywood.[13][page needed][14][page needed] It was slow to respond to the changing legal, economic, and demographic nature of the motion picture industry during the 1950s and 1960s;[15][page needed][16][page needed][17][page needed] and although its films often did well at the box office, it lost significant amounts of money throughout the 1960s.[16][17] In 1966, MGM was sold to Canadian investorEdgar Bronfman Sr., whose sonEdgar Jr. would later buyUniversal Studios.[citation needed] Three years later, an increasingly unprofitable MGM was bought byKirk Kerkorian, who slashed staff and production costs, forced the studio to produce low-quality, low-budget fare, and then ceased theatrical distribution in 1973.[17] The studio continued to produce five to six films a year that were distributed through other studios, usuallyUnited Artists (UA). Kerkorian did, however, commit to increased production and an expanded film library when he bought UA in 1981.[citation needed]
MGM ramped up internal production, and kept production going at UA, which was continuing to thrive, particularly with the lucrativeJames Bond film franchise.[18][page needed] It also incurred significant amounts of debt to increase production.[19][page needed] The studio took on additional debt as a series of owners took charge in the 1980s and early 1990s. In 1986,Ted Turner bought MGM, but a few months later, sold the company back to Kerkorian to recoup massive debt, while keeping the library assets for himself. The series of deals left MGM even more heavily in debt.[20] MGM was bought byPathé Communications (led by Italian publishing magnateGiancarlo Parretti) in 1990, but Parretti lost control of Pathé and defaulted on the loans used to purchase the studio.[17][20] The French banking conglomerateCrédit Lyonnais, the studio's major creditor, then took control of MGM.[17][20][21] Even more deeply in debt, MGM was purchased by a joint venture between Kerkorian, producerFrank Mancuso, and Australia'sSeven Network in 1996.[22]
After its bankruptcy in 2010, MGM reorganized, with its creditors' $4 billion debt transferred to ownership. MGM's creditors controlled MGM through MGM Holdings, a private company. New management of its film and television production divisions was installed.
In 1924, movie theater magnateMarcus Loew had a problem. He had boughtMetro Pictures Corporation in 1919 for $3 million, to provide a steady supply of films for his largeLoew's Theatres chain.[25] However, he found that his new property only provided a lackluster assortment of films. Seeking to solve this problem, Loew purchasedGoldwyn Pictures in 1924 for $5 million to improve the quality of the theaters' products.[25] However, these purchases created a need for someone to oversee his new Hollywood operations, since longtime assistantNicholas Schenck was needed in New York headquarters to oversee the 150 theaters. A solution came in the person ofLouis B. Mayer, head of Louis B. Mayer Pictures. Loew bought the Mayer studio for $75,000.[25] Loews Incorporated completed the merger of the Loews theater chain and the three studios on April 17, 1924, celebrated with a fete on April 26, 1924.[26] Mayer became head of the renamed Metro-Goldwyn-Mayer, with 24-year-oldIrving Thalberg as head of production.[27] Final approval over budgets and contracts rested with New York City-based Loews Inc., while production decisions rested with the production headquarters in Culver City.[25]
MGM produced more than 100 feature films in its first two years. In 1925, MGM released the extravagant and successfulBen-Hur, taking a $4.7 million profit that year, its first full year.[27] Also in 1925, MGM,Paramount Pictures andUFA formed a joint German distributor,Parufamet.[28]
Marcus Loew died in 1927, and control of Loew's passed to Nicholas Schenck. In 1929,William Fox ofFox Film Corporation bought the Loew family's holdings with Schenck's assent. Mayer and Thalberg disagreed with the decision. Mayer was active in theCalifornia Republican Party and used his political connections to persuade theJustice Department to delay final approval of the deal onantitrust grounds. During this time, in the summer of 1929, Fox was badly hurt in an automobile accident. By the time he recovered, thestock market crash in the fall of 1929 had nearly wiped Fox out and ended any chance of the Loew's merger going through. Schenck and Mayer had never gotten along (Mayer reportedly referred to his boss as "Mr. Skunk"),[29][page needed] and the abortive Fox merger increased the animosity between the two men.
MGM was one of the first studios to experiment with filming inTechnicolor. Using the two-color Technicolor process then available, MGM filmed portions ofThe Uninvited Guest (1924),The Big Parade (1925), andBen-Hur (1925), among others, in the process. MGM releasedThe Viking (1928), the first complete Technicolor feature with a synchronized score and sound effects, but no spoken dialogue.
With the arrival of "talkies", MGM moved slowly and reluctantly into the sound era, releasing features such asWhite Shadows in the South Seas (1928) with music and sound effects, andAlias Jimmy Valentine (1928) with limited dialogue sequences. Their first full-fledged talkie, the musicalThe Broadway Melody (1929), however, was both a box-office success and won theAcademy Award as Best Picture of the Year.
MGM was the last major studio to convert to sound. The studio's first all-color, "all-talking" sound feature with dialogue was the musicalThe Rogue Song in 1930. MGM included a sequence made in Technicolor's superior new three-color process, a musical number in the otherwise black-and-whiteThe Cat and the Fiddle (1934), starring Jeanette MacDonald andRamon Novarro. The studio then produced a number of three-color short subjects including the musicalLa Fiesta de Santa Barbara (1935); the first complete Technicolor feature wasSweethearts (1938) with MacDonald and Nelson Eddy, the earlier of the popular singing team's two films in color. From then on, MGM regularly produced several films a year in Technicolor withNorthwest Passage (1939) being one of the most notable of this era.
In addition to a large short-subjects program of its own, MGM also distributed the shorts and features produced byHal Roach Studios, including comedy shorts starringLaurel and Hardy,Our Gang andCharley Chase. The studio's distribution deal with Roach lasted from 1927 to 1938, and MGM benefited in particular from the success of the popular Laurel and Hardy films. In 1938, MGM purchased the rights to the Our Gang series from Roach and production of the successful series moved to the MGM studios, where it continued until 1944.[30] From 1929 to 1931, MGM produced a series of comedy shorts calledAll Barkie Dogville Comedies, in which trained dogs were dressed up to parody contemporary films and were voiced by actors. One of the shorts,The Dogway Melody (1930), spoofed MGM's hit 1929 musicalThe Broadway Melody.
MGM entered the music industry by purchasing the "Big Three" starting withMiller Music Publishing Co. in 1934, then Robbins Music Corporation.[31] In 1935, MGM acquired a controlling interest in the capital stock ofLeo Feist, Inc., the last of the Big Three.[31] In the1934 California gubernatorial election Democratic nomineeUpton Sinclair ran against Republican incumbentFrank Merriam, the latter of whom MGM supported. MGM and other film studios deducted a day's pay from each of their employees to raise an anti-Sinclair fund that amounted to $500,000.Irving Thalberg was to lead MGM's anti-Sinclair campaign and the studio recruitedCarey Wilson to create a series of anti-Sinclair propaganda films. These films, directed byFelix E. Feist, included fake newsreels of Sinclair supporters who were portrayed as bums and criminals. They were shown in California movie theaters, with one episode featuring hired actors as Sinclair supporters speaking with foreign accents.[32]
The first print logo of MGM used from 1924 to 1964.
During the 1930s, MGM produced approximately 50 pictures a year, though it never met its goal of releasing a new motion picture each and every week (it was only able to release one feature film every nine days). Loew's 153 theaters were mostly located in New York, the Northeast, and Deep South;Gone with the Wind (1939) had its world premiere atLoew's Grand Theatre in Atlanta, Georgia. A fine reputation was gained for lavish productions that were sophisticated and polished to cater to an urban audience. Still, as theGreat Depression deepened, MGM began to economize by "recycling" existing sets, costumes, and furnishings from previous projects. This recycling practice never let up once started. In addition, MGM saved money because it was the only one of the big five studios that did not own an off-sitemovie ranch. Until the mid-1950s, MGM could make a claim its rivals could not: the studio never lost money, although it did produce an occasional disaster such asParnell (1937), Clark Gable's biggest flop. MGM was the only Hollywood studio that continued to pay dividends during the 1930s.
MGM stars dominated the box office during the 1930s, and the studio was credited for inventing the Hollywood stable-of-stars system as well. MGM contracted with the American Musical Academy of Arts Association to handle all of their press and artist development. The AMAAA's main function was to develop the budding stars and to make them appealing to the public. Stars such as Joan Crawford, Greta Garbo, Myrna Loy, Jeanette MacDonald and Norma Shearer, reigned as the top-paid figures at the studio. Another MGM actress of the era,Jean Harlow, who had previously appeared in theHoward Hughes filmHell's Angels (1930), now had a big break and became a Hollywood sex symbol and one of MGM's most admired stars. Despite Harlow's gain, Garbo arguably remained the biggest star at MGM. Shearer was still a money maker despite her screen appearances becoming scarce, and Crawford continued her box-office popularity until 1937. MGM also received a boost through the man who would become known as "King of Hollywood", Clark Gable. Gable's career took off to new heights after he won an Oscar for theColumbia filmIt Happened One Night (1934).
Mayer and Irving Thalberg's association began warmly, but eventually relations between the two became strained; Thalberg preferred literary works and expensive costume pictures over the lower-budget, family-oriented crowd pleasers Mayer wanted. Thalberg, always physically frail, was removed as head of production in 1932. Mayer encouraged other staff producers, among them his son-in-lawDavid O. Selznick, but no one seemed to have the sure touch of Thalberg. As Thalberg's health deteriorated in 1936, Mayer could now serve as his temporary replacement. Rumors had begun circulating for some time that Thalberg was leaving MGM to set up his own independent company;[citation needed] his premature death at age 37 in September 1936 cost MGM dearly.[27]
In 1937, Mayer hiredMervyn LeRoy, a formerWarner Bros. producer/director as MGM's top producer and Thalberg's replacement.[34] LeRoy convinced Mayer to acquire the film rights to the popular children's bookThe Wonderful Wizard of Oz; MGM purchased the rights fromSamuel Goldwyn for $75,000 in 1938.[35]
MGM's hits in 1939 includedThe Wizard of Oz;Ninotchka, starringGreta Garbo;The Women, starringJoan Crawford andNorma Shearer; andGone with the Wind, starringVivien Leigh asScarlett O'Hara and Clark Gable asRhett Butler. AlthoughGone With the Wind was produced bySelznick International Pictures, the film was distributed by MGM as part of a deal for producerDavid O. Selznick, Mayer's son-in-law, to obtain the services of Gable as well as financial assistance necessary for Selznick to complete the film. After Selznick International foundered in 1944, MGM acquired the full rights toGone With the Wind.[27] WhileThe Wizard of Oz was a critical hit, the production costs for the film were so expensive it took 20 years before it turned a profit.[36]
1940s
Within one year, beginning in 1942, Mayer released his five highest-paid actresses from their MGM contracts: Joan Crawford, Greta Garbo, Myrna Loy, Jeanette MacDonald and Norma Shearer. After being labeled "box office poison", Crawford's MGM contract was terminated and she moved to Warner Brothers, where her career took a dramatic upturn. Garbo and Shearer never made another film after leaving the lot. Of the five stars, Loy and MacDonald were the only two whom Mayer later rehired, in 1947 and 1948 respectively; Crawford returned to MGM after Mayer's departure for the musical dramaTorch Song in 1953.
Increasingly, before and during World War II, Mayer came to rely on his "College of Cardinals"—senior producers who controlled the studio's output. This management-by-committee resulted in MGM losing its momentum, developing few new stars, and relying on the safety of sequels and bland material. (Dorothy Parker memorably referred to the studio as "Metro-Goldwyn-Merde".[37][page needed]) Production values remained high, and even"B" pictures carried a polish and gloss that made them expensive to mount. After 1940, production was cut from 50 pictures a year to a more manageable 25 features per year. During this period, MGM released several very successfulmusicals with stars such asFred Astaire,Judy Garland,Gene Kelly, andFrank Sinatra.
1950s
Audiences began drifting to television in the late 1940s, and MGM and the other studios were finding it increasingly difficult to attract them to theaters. With its high overhead expenses, MGM's profit margins continued to decrease. Word came fromNicholas Schenck in New York to find "a new Thalberg" who could improve quality while paring costs. Mayer thought he had found this savior inDore Schary, a writer and producer who had found success at runningRKO Pictures. Lavish musicals were Schary's focus, and hits likeEaster Parade (1948),Annie Get Your Gun (1950) and the popular musical films of tenorMario Lanza, includingThat Midnight Kiss (1949) andThe Great Caruso (1951), helped to keep MGM profitable during this period.[27]
In August 1951, Louis B. Mayer was fired by MGM's East Coast executives[38] and he was replaced by Schary. Gradually cutting loose expensive contract players (including $6,000-a-week Judy Garland in 1950 and "King of Hollywood" Clark Gable in 1954), saving money by recycling existing movie sets instead of building costly new scenery, and reworking expensive old costumes, Schary managed to keep the studio running much as it had through the early 1940s, though his sensibilities for hard-edged, message movies would never bear much fruit. One bright spot continued to be MGM's musical pictures, under the aegis of producerArthur Freed, who was operating what amounted to an independent unit within the studio. During the 1950's, MGM produced some well-regarded and profitable musicals that would later be acknowledged as classics, among themAn American in Paris (1951),Singin' in the Rain (1952), andSeven Brides for Seven Brothers (1954). However,Brigadoon (1954),Deep in My Heart (1954),It's Always Fair Weather (1955),Invitation to the Dance (1956), andLes Girls (1957) were extravagant song and dance flops, and evenThe Band Wagon (1953) andSilk Stockings (1957), two musicals that are now considered classics and among the studio's best, lost money upon their initial releases.
In 1952, as a settlement of the government's restraint-of-trade action,United States v. Paramount Pictures, Inc. 334 US 131 (1948),Loews, Inc. gave up control of MGM.[27] It would take another five years before the interlocking arrangements were completely undone, by which time both Loews and MGM were losing money. In 1956, Schary was ousted from MGM in another power struggle against the New York-based executives.[39] Cost overruns and the failure of the big-budget epicRaintree County (1957) prompted the studio to terminate Schary's contract.
Schary's reign at MGM had been marked with few legitimate hits, but his departure (along with the retirement of Schenck in 1955) left a power vacuum that would prove difficult to fill. InitiallyJoseph Vogel became president andSol Siegel head of production. In 1957 (by coincidence, the year Mayer died), the studio lost money for the first time in its 34-year history.[27] AfterSpencer Tracy left MGM in 1955, the only major star remaining under contract from MGM's heyday wasRobert Taylor; by 1960, MGM had released Taylor and the last of its contract players, with many either retiring or moving on to television.
MGM's first television program,The MGM Parade, was produced by MGM's trailer department as one of the compilation and promotional shows that imitated Disney's seriesDisneyland[40] which was also onABC.Parade was canceled by ABC in the 2nd quarter of 1956.[41] MGM took bids for its movie library in 1956 from Lou Chesler and others, but decided on entering the TV market itself. Chesler had offered $50 million for the film library.[41]MGM Television was started with the hiring of Bud Barry to head up the operation in June 1956.MGM Television was to distribute its films to TV (starting with the networks), TV production and purchasing TV stations. TV production was expected to start with the 1957–58 season and was to include half-hour remakes of, or series based on, its pictures. Initial feature film sales focused on selling to the networks.[41]
The year 1957 also marked the end of MGM's animation department, as the studio determined it could generate the same amount of revenue by reissuing older cartoons as it could by producing and releasing new ones.[42] William Hanna and Joseph Barbera, by then the heads of the MGM cartoon studio, took most of their unit and made their own company,Hanna-Barbera Productions, a successful producer of television animation.
In 1956, MGM sold the television rights forThe Wizard of Oz toCBS, which scheduled it to be shown in November of that year. In a landmark event, the film became the first American theatrical fiction film to be shown complete in one evening on prime time television over a major American commercial network. (Laurence Olivier's version ofHamlet was shown on prime time network TV a month later, but split in half over two weeks, and the 1950 film,The Titan: Story of Michelangelo was telecast by ABC in 1952, but that was a documentary.) Beginning in 1959, and lasting until 1991, telecasts ofThe Wizard of Oz became an annual tradition, drawing huge audiences in homes all over the U.S. and earning additional profits for MGM. The studio was all too happy to seeOz become, through television, one of the two or three most famous films MGM has ever made, and one of the few films that nearly everybody in the U.S. has seen at least once. TodayThe Wizard of Oz is regularly shown on theTurner-owned channels, no longer just once a year.
In animation, MGM purchased the rights in 1930 to distribute a series of cartoons that starred a character namedFlip the Frog, produced byUb Iwerks. The first cartoon in this series (titledFiddlesticks) was the first sound cartoon to be produced in two-color Technicolor. In 1933, Ub Iwerks canceled the unsuccessful Flip the Frog series and MGM began to distribute its second series of cartoons, starring a character namedWillie Whopper, that was also produced by Iwerks.[citation needed]
In 1934, after Iwerks' distribution contract expired, MGM contracted with animation producers/directorsHugh Harman and Rudolph Ising to produce a new series of color cartoons. Harman and Ising came to MGM after breaking ties withLeon Schlesinger and Warner Bros. and brought with them their popularLooney Tunes character,Bosko. These were known asHappy Harmonies, and in many ways resembled theLooney Tunes' sister series,Merrie Melodies. TheHappy Harmonies regularly ran over budget, and MGM dismissed Harman and Ising in 1937 to start its ownanimation studio.[43]
After initial struggles with a poorly received series ofThe Captain and the Kids cartoons, the studio rehired Harman and Ising in 1939, and Ising created the studio's first successful animated character,Barney Bear. However, MGM's biggest cartoon stars would come in the form of the cat-and-mouse duoTom and Jerry, created byWilliam Hanna andJoseph Barbera in 1940. TheTom and Jerry cartoons won sevenAcademy Awards between 1943 and 1953. In 1941,Tex Avery, another Schlesinger alumnus, joined the animation department. Avery gave the unit its image, with successes such asRed Hot Riding Hood,Swing Shift Cinderella, and theDroopy series.
Avery left the studio in 1953, leaving Hanna and Barbera to focus on the popularTom and Jerry andDroopy series. After 1955, all cartoons were filmed inCinemaScope until MGM closed its cartoon division in 1957.[44]
In 1961, MGM resumed the release of newTom and Jerry shorts, and production moved to Rembrandt Films inPrague,Czechoslovakia (now the Czech Republic) under the supervision ofGene Deitch, who had been hired away fromTerrytoons. Although Deitch'sTom and Jerry cartoons were considered to be vastly inferior to the earlier Hanna and Barbera shorts, they did receive positive reviews in some quarters.[45] In 1963, the production ofTom and Jerry returned to Hollywood underChuck Jones and hisSib Tower 12 Productions studio (later absorbed by MGM and renamedMGM Animation/Visual Arts). Jones' group also produced its own works, winning anOscar forThe Dot and the Line (1965), as well as producing the classic television version ofDr. Seuss'sHow the Grinch Stole Christmas! (1966) featuring the voice ofBoris Karloff.Tom and Jerry folded in 1967, and the animation department continued withtelevision specials and one feature film,The Phantom Tollbooth. A revivedMetro-Goldwyn-Mayer Animation was in existence from 1993 to 1999.
Metro-Goldwyn-Mayer Inc.
MGM in the 1960s
In 1959, MGM enjoyed what is quite probably its greatest financial success of later years, with the release of its nearly four-hourTechnicolor epicBen–Hur, a remake of its 1925 silent film hit, loosely based on a true story—despite being adapted from the novel byGeneral Lew Wallace. StarringCharlton Heston in the title role, the film was critically acclaimed, and won 11 Academy Awards, including Best Picture, a record that held untilTitanic matched it in 1997 andThe Lord of the Rings: The Return of the King also did in 2003.
During this period, MGM fell into a questionable practice that eventually nearly doomed the studio: an entire year's production schedule relied on the success of one big-budget epic film each year.[citation needed] This policy began in 1959, whenBen–Hur proved profitable enough to carry the studio through 1960. However, four succeeding big-budget epics—likeBen–Hur, each a remake—failed:Cimarron (1960),King of Kings (1961),Four Horsemen of the Apocalypse (1961), and, most notoriously,Mutiny on the Bounty (1962). The Cinerama filmThe Wonderful World of the Brothers Grimm (also 1962), the first film inCinerama to actually tell a story, was also a financial failure. One other big-budget epic that was a success, however, was the MGM-Cinerama co-productionHow the West Was Won (1962), with a huge all-star cast.King of Kings, while a commercial and critical bomb at the time, has since come to be regarded as a film classic. The losses caused by these films led to the resignations of Sol Siegel and Joseph Vogel who were replaced byRobert M. Weitman (head of production) andRobert O'Brien (president).
In 1969,Kirk Kerkorian purchased 40 percent of MGM stock.[16][52] What appealed to Kerkorian was MGM's asset value, which included subsidiary businesses, real estate, and the value of 45 years' worth of glamour associated with the name, which he attached to a Las Vegas hotel andcasino. As for film-making, that part of the company was bleeding money and was quickly and severelydownsized under the supervision ofJames T. Aubrey Jr. With changes in its business model including fewer pictures per year, more location shooting and more distribution of independent productions, MGM's operations were reduced. Aubrey sold off MGM's accumulation of props, furnishings and historical memorabilia, including a pair of Dorothy'sruby slippers fromThe Wizard of Oz. Lot 3, 40 acres (160,000 m2) of back-lot property, was sold off for real-estate development. In 1971, it was announced that MGM was in talks with20th Century-Fox about a possible merger, a plan which never came into fruition.[53] Under Aubrey, MGM also sold offMGM Records and its overseas theater holdings.[27]
Through the 1970s, studio output slowed considerably as Aubrey preferred four or five medium-budget pictures each year along with a smattering of low-budget fare.[27] In October 1973 and in decline in output, MGM closed its distribution offices then outsourced distribution for its films for a ten-year period toUnited Artists (UA). UA also purchased MGM's music publishing arm, Robbins, Feist & Miller plus half of Canadian record labelQuality Records.[27][54]
Kerkorian had largely distanced himself from the operations of the studio, focusing on theMGM Grand Hotel, investing $120 million into that project.[27] Another portion of the backlot was sold in 1974. The last shooting done on thebacklot was the introductory material forThat's Entertainment! (1974), a retrospective documentary that became a surprise hit for the studio.
That's Entertainment! was authorized byDan Melnick, who was appointed head of production in 1972. Under Melnick's regime, MGM produced a number of successful films in the 1970s, includingWestworld (1973),Soylent Green (1973),The Sunshine Boys (1975),The Wind and the Lion (1975),Network (1976) andComa (1978). Despite these successes, MGM never reclaimed its former status.
TheMGM Recording Studios were sold in 1975. In 1979, Kerkorian issued a press statement that MGM was now primarily a hotel company. In 1980, MGM hit a symbolic low point whenDavid Begelman, earlier fired by Columbia following the discovery of his acts of forgery and embezzlement, was installed as MGM's president and CEO.
In 1980, Metro-Goldwyn-Mayer, Inc. split its production and casino units into separate companies: Metro-Goldwyn-Mayer Film Co. and MGM Grand Hotels, Inc.[55] The rise of ancillary markets was enough to allow MGM to increase production to 10-15 films a year compared to three to six in the previous decade, but first it needed to revive its distribution unit.
MGM/UA Entertainment
Logo used from 1982 to 1986
MGM proceeded to return to theatrical distribution in 1981 with its purchase ofUnited Artists (UA), as UA's parent companyTransamerica Corporation decided to jettison the studio following the huge financial debacle ofHeaven's Gate (1980);[17][20][page needed] after this acquisition, Metro-Goldwyn-Mayer Film Co. was renamed "MGM/UA Entertainment Company".[27] MGM/UA formed a trio of subsidiaries, theMGM/UA Home Entertainment Group, MGM/UA Classics, and theMGM/UA Television Group in 1982. Kerkorian offered to purchase the remaining outstanding MGM shares he did not own to take the company private but was met with resistance.[27] MGM/UA sold its music publishing division toCBS Songs in 1983 with a five-year co-publishing agreement.[56]
After the purchase of UA, David Begelman's duties were transferred to that unit. Under Begelman, MGM/UA produced a number of unsuccessful films, and he was fired in July 1982. Out of the 11 films he put into production, only one film,Poltergeist (1982), proved to be a clear hit during his tenure with the studio.[57]WarGames (1983) andOctopussy (1983) were both hits for MGM/UA, but did not push MGM into the profit range that Kerkorian wanted.[citation needed]
Not even MGM's greatest asset – its library – was enough to keep the studio afloat.[55] After 1982, the studio relied more on distribution, picking up independent productions, rather than financing its own projects.[55] The first of these deals was withFred Silverman's InterMedia.[58][59] In 1982, the company entered into a relationship with mini-major studio and film distributorThe Cannon Group, Inc. for theatrical and home video distribution; this would not be the last time Cannon and MGM would be involved with each other.[60] Other producers and companies, such asDino De Laurentiis and PSM Entertainment, also made deals with MGM/UA.[61][62]
MGM Entertainment
The MGM sign being dismantled once Lorimar took control of the Culver City lot in 1986
On August 7, 1985,Turner Broadcasting System offered to buy MGM/UA. As film licensing to television became more complicated,Ted Turner saw the value of acquiring MGM's film library for hisSuperstationWTBS.[55] Ahead of the merger, MGM/UA Distribution Co. become the newly minted joint venture UA/MGM Distribution Co., which would handle sales and operations of MGM and UA feature films.[63] On March 25 of the following year, the deal was finalized in a cash-stock deal for $1.5 billion,[20][55][64][page needed] and the company was renamed "MGM Entertainment Co.".[65][66] Turner immediately sold MGM's UA subsidiary back to Kerkorian for roughly $480 million.[20][64] However, Turner was unable to find financing for the rest of the deal because of concerns in the financial community over the debt-load of his companies; thus, on August 26, 1986, Turner was forced to sell MGM's production and distribution assets to UA for $300 million.[20][64][67][68] TheMGM studio lot and lab facilities were sold toLorimar-Telepictures.[67] Lorimar-Telepictures would later sell theMetrocolor facilities, Metrocolor Film Laboratory (aka MGM Laboratory) toTechnicolor for $60 million.[69] Turner retained the pre-May 1986 library of MGM films, along with theRKO Radio Pictures and pre-1950Warner Bros. films which UA had previously purchased.[67]
How much of MGM's back catalog Turner actually obtained was a point of conflict for a time; eventually, it was determined that Turner owned all of the pre-May 1986 MGM library, as well as the pre-1950 Warner Bros. catalog,[70][71][note 1] thePopeye cartoons released by Paramount (both the pre-1950 Warner Bros. library andPopeye cartoons were sold toAssociated Artists Productions, which was later bought by UA), and the US/Canadian rights to the RKO library, in addition to MGM's television series. Turner used the acquired films to launch the new cable channelTurner Network Television (TNT).
MGM/UA Communications
After Kerkorian reclaimed MGM in August 1986, the MGM/UA name continued to be used, but the company changed its name, this time to MGM/UA Communications Co., which was renamed from United Artists Corporation, now using MGM and UA as separate brands.[72][73] The change became official on September 10, 1986, and at that time, theNew York Stock Exchange (NYSE) ticker symbol was changed from UA, yet again, to MGM.[74] In 1987, MGM/UA Communications Co.,Paramount Pictures andUniversal Pictures teamed up in order to market feature film and television product to China.[75]
Kerkorian, however, continued to try to sell portions of MGM/UA. In July 1988, Kerkorian announced plans to split MGM and UA into separate studios. Under this deal, Kerkorian, who owned 82% of MGM/UA Communications, would have sold 25% of MGM toBarris Industries (controlled by producersBurt Sugarman,Jon Peters, andPeter Guber).[76] The proposition to spin off MGM was called off a few weeks later.[77] In 1989, two Australian-based media entities attempted to gain control of MGM/UA. The first wasRupert Murdoch'sNews Corporation, which had purchased 20th Century Fox in 1985, making a $1.35 billion bid; rival Australian media companyQintex attempted to buy MGM from Kerkorian—topping Murdoch's bid with a $1.5 billion offer—but the deal collapsed as Qintex was plagued by financial issues.[78] Ted Turner also attempted to buy MGM/UA again, but these efforts also failed.[79]
In 1990, Italian financierGiancarlo Parretti announced he was about to buy MGM/UA. Although the French government had scuttled Parretti's bid to buyPathé due to concerns about his character, background, and past dealings, Parretti gained backing fromCrédit Lyonnais and bought MGM/UA from Kirk Kerkorian.[80][81][82] To finance the purchase, Parretti licensed the MGM/UA library toTime Warner for home video and Turner for domestic television rights[55] until 2003.[83] He then merged it with his Pathé Communications Corporation (formerlyThe Cannon Group, a distributor that Parretti had renamed before his aborted bid for Pathé; ironically, MGM had previously distributed Cannon product several years prior) to form MGM–Pathe Communications Co.
The well-respected executive,Alan Ladd Jr., a former president of MGM/UA, was brought on board as CEO of MGM in 1991. However, a year later, Parretti's ownership of MGM–Pathé dissolved in a flurry of lawsuits and a default by Crédit Lyonnais, and Parretti facedsecurities-fraud charges in the United States and Europe. It was later revealed that Parretti's deal to buy MGM/UA was largely based on fraudulent and/or highly leveraged loans; upon taking over MGM, he had fired almost all of the financial staff, resulting in chaos at MGM amid complaints from actors, directors and others who were not being paid.[84]Danjaq, LLC also began litigation against MGM during this time after Parretti attempted to sell the international television rights to theJames Bond franchise without their knowledge or approval, as a method of financing his buyout of MGM; this in turn caused the planned production of the seventeenthBond film,Property of a Lady, to grind to a halt (the length of the lawsuit ultimately led toTimothy Dalton's departure from the role andPierce Brosnan taking over for the seventeenth installment, 1995'sGoldenEye).[85][86][87]
On the verge of bankruptcy, Crédit Lyonnais took full control of MGM–Pathé via loan default in mid-1992 and reverted its name back to Metro-Goldwyn-Mayer. The bank fired Ladd and replaced him with former Paramount executiveFrank Mancuso Sr. Mancuso then hired Michael Marcus as chairman, MGM Pictures and former Warner Bros. executiveJohn Calley as United Artists head. A television production division was started up.[88] As part of his exit package, Ladd took some of the top properties, includingBraveheart.
On December 21, 1992, MGM's 15% investment ($30 million in cash) inCarolco Pictures plus a $30 million convertible note was approved by Carolco's board. MGM also started distributing Carolco's films in January 1994 after its deal withTriStar Pictures ended. While MGM had to convince parent Credit Lyonnais to allow the deal, Lyonnais was Carolco's main lender thus allowing the bank to collect outstanding debts and extend a new line of credit.[89]
MGM Holdings, Inc. was formed to take on about $1 billion in MGM's liabilities off MGM's balance sheet in the third quarter of 1993. Credit Lyonnais extended a $400 million line of credit allowing a Chemical Bank lead bank group to extend a $350 million line of credit in 1994. In 1994, MGM had a hit inStargate.[88] Deals made during this era included one withSega of America to create television shows and films based on Sega's video games (including an ultimately-unmade film based onSonic the Hedgehog, titledSonic: Wonders of the World)[90][91][92] and another deal withRysher Entertainment.[93]
Metro-Goldwyn-Mayer Pictures
Crédit Lyonnais soon put MGM up for sale. Bidders includedNews Corporation,The Walt Disney Company andGeneral Electric (GE); independent production firmsNew Regency andMorgan Creek Productions; and several foreign firms, including France'sChargeurs, Germany'sBertelsmann and the British/Dutch media companyPolyGram. Ultimately the highest bidder was none other than Kirk Kerkorian, who re-purchased the studio in October 1996 for $1.3 billion, becoming MGM's owner for the third time; others involved in the deal included MGM studio head Mancuso and Australian television stationSeven Network (which Kerkorian would later purchase himself in 1998).[94][95][96][97][98][99] John Calley left as head of United Artists to become head ofSony Pictures Entertainment around this time, allegedly because of Mancuso not keeping him informed of the planned buyout and his low salary.[100][101]
1997 proved to be an eventful year for MGM. On April 11, 1997, MGM boughtMetromedia's film subsidiaries (Orion Pictures,The Samuel Goldwyn Company, and theMotion Picture Corporation of America) for US$573 million, substantially enlarging its library of films and television series and acquiring additional production capacity.[102] The deal closed in July of that year.[103] This catalog, along with theJames Bond franchise, was considered to be MGM's primary asset.[104][105] MGM's long-running cable television series,Stargate SG-1, premiered on Showtime on July 27.[106] MGM andDanjaq, LLC filed a lawsuit against Sony Pictures in November, as Sony was intending to launch a rival Bond franchise backed byKevin McClory; the lawsuit alleged that Calley had used confidential information from his tenure at MGM/UA to assist Sony with their attempt at making aJames Bond film.[107][108][109] MGM acquired the rights to the unofficial Bond productionNever Say Never Again fromJack Schwartzman's estate that December.[110]
In December 1997, MGM attempted to purchase 1,000 films (referred to as theEpic film library) held byConsortium de Réalisation, but was outbid byPolyGram.[111] However, they ultimately succeeded when they acquired2⁄3 of the pre-1996PolyGram Filmed Entertainment library fromSeagram in 1999 for $250 million, increasing their library holdings to 4,000. Prior to that, MGM had held a home video license for 100 of the films since spring 1997.[112][113] The PolyGram libraries were purchased by itsOrion Pictures subsidiary so as to avoid its 1990 video distribution agreement with Warner Home Video.[83] The studio also obtained the broadcast rights to more than 800 of its films previously licensed to Turner Broadcasting System.[114][115]
By 1998, MGM had started a specialty film unit using The Samuel Goldwyn Company under the Goldwyn Films name.Samuel Goldwyn Jr. sued Metromedia over salary and damages when he worked at Goldwyn Company under Metromedia and sued MGM over the use of the Goldwyn name claiming trademark infringement and unfair competition. MGM and Metromedia settled on January 10, 1999, with MGM's Goldwyn Films changing its name to G2 Films.[116] In the middle of that year, MGM and Sony settled in an out-of-court lawsuit that saw MGM trading itsSpider-Man film rights (itself obtained by MGM through a messy legal process involving Cannon and Carolco) to Sony in exchange for gaining the rights toCasino Royale.[107][117][118][119]
In March 1999, MGM announced that it had paid $225 million to end its home video distribution contract with Warner Home Video and re-acquired the home video rights to their post-1986 catalog while Warner took over home video distribution of the pre-1986 catalogue.[120][121] MGM also ended its international theatrical distribution agreement withUnited International Pictures (UIP) after UIP was accused by theEuropean Union (EU) of being an illegalcartel.[122] On June 22, 1999, MGM announced they had formed a three-year international distribution agreement and strategic alliance with20th Century Fox for theatrical and home video releases outside North America, alongside a deal to jointly explore cable and satellite distribution ventures worldwide.[123][124] The Fox deal would begin in February 2000 for home video releases and November 2000 for theatrical releases, and last until the end of January 2003.[125]
MGM purchased 20 percent ofRainbow Media Group fromCablevision Systems for $825 million in 2001.[126] MGM attempted to take overUniversal Studios in 2003, but failed, and was forced to sell several of its cable channel investments (taking a $75-million loss on the deal).[127][128]
In January 2002, MGM formed the MGM Entertainment Business Group with lawyer Darcie Denkert as president. This placed her in charge of MGM on Stage, the company's theatrical arm. Her friend Dean Stolber joined her as co-president of the theatrical unit.[129]
On May 27, 2003, MGM re-acquired full home video distribution rights to its films internationally, while Fox would continue to distribute on behalf of MGM in select developing regions.[130]
In 2002, Kerkorian again put MGM up for sale, with a suggested sale price of $7 billion.[131] In 2004, many of MGM's competitors started to make bids to purchase MGM, beginning withTime Warner. Time Warner's bid was expected, since the company's largest shareholder was Ted Turner, whose Turner Broadcasting System had merged with Time Warner in 1996. After a short period of negotiations with MGM, Time Warner was unsuccessful. The leading bidder proved to beSony Corporation of America, backed byComcast and private equity firmsTexas Pacific Group (now TPG Capital, L.P.), DLJ andProvidence Equity Partners. Sony's primary goal was to ensureBlu-ray Disc support at MGM; cost synergies withSony Pictures Entertainment were secondary. Time Warner made a counter-bid (which Ted Turner reportedly tried to block), but on September 13, 2004, Sony increased its bid of US$11.25 per share (roughly $4.7 billion) to $12 per share ($5 billion), and Time Warner subsequently withdrew its bid of $11 per share ($4.5 billion). MGM and Sony agreed on a purchase price of nearly $5 billion, of which about $2 billion was to pay off MGM's debt.[132][133] From 2005 to 2006, theColumbia TriStar Motion Picture Group domestically distributed films by MGM and UA.[citation needed]
However, problems quickly arose between MGM and Sony. The largest issue was Sony failing to meet sales projections for MGM's catalog on DVD; when this occurred, Providence Equity brought inHarry Sloan as chairman of MGM. Sloan began to champion MGM's future as being independent of Sony as opposed to a label under Sony control; other issues both between MGM and Sony as well as inside both companies began to manifest, resulting in MGM reestablishing itself as an independent studio.[134]
In February 2006, MGM announced it would return as a theatrical distribution company. MGM struck deals withThe Weinstein Company (TWC),Lakeshore Entertainment, Bauer Martinez, and many other independent studios, and then announced its plans to release 14 feature films for 2006 and early 2007. MGM also hoped to increase the amount to over 20 by 2007.Lucky Number Slevin, released April 7, was the first film released under the new MGM era.[135] The TWC distribution agreement covered three years, but ended three months early.[136]
Atentative agreement was signed in Seoul on March 15, 2006, between MGM, South Korea-based entertainment agency Glovit andBusan city officials for atheme park scheduled to open in 2011. MGM Studio City was projected to cost $1.02 billion, built on 245 acres owned by the city in a planned tourist district and contain 27 attractions, a film academy with movie sets, hotels, restaurants and shopping facilities. Glovit was expected to find funding and oversee management of the park, while MGM received a licensing agreement making them handle content and overall planning and the option to buy a 5%–10% share.[142]
On November 2, 2006, producer/actorTom Cruise and his production partner,Paula Wagner, signed an agreement with MGM to runUnited Artists. Wagner served as United Artists' chief executive.[143][144]
MGM in the digital age
Over the next several years, MGM launched a number of initiatives in distribution and the use of new technology and media, as well as joint ventures to promote and sell its products. In April 2007, it was announced that MGM movies would be able to be downloaded through Apple'siTunes service, with MGM bringing an estimated 100 of its existing movies to iTunes service, the California-based computer company revealed. The list of movies included the likes of modern features such asRocky,Ronin,Mad Max, andDances with Wolves, along with more golden-era classics such asLilies of the Field andThe Great Train Robbery.[145] In October, the company launchedMGM HD onDirecTV, offering a library of movies formatted in Hi Def.[146] MGM teamed up withWeigel Broadcasting to launch a new channel titledThis TV on November 1, 2008.[147][148] On August 12, 2008, MGM teamed up withComcast to launch a new video-on-demand network titled Impact.[149] On November 10, 2008, MGM announced that it would release full-length films onYouTube.[150]
On April 14, 2008, a South Korea government agency announced that MGM and Incheon International Airport Corporation agreed to build MGM Studio Theme Park. The selected site was a 1.5 million square meterYeongjongdo island property near theIncheon International Airport.[151] Ultimately, the park was designed but never built.[152]
MGM files for bankruptcy
As of mid-2009, MGM had US$3.7 billion in debt, and interest payments alone totaled $250 million a year.[153][154][155] MGM was earning approximately $500 million a year on income from its extensive film and television library, but theeconomic recession is reported to have reduced this income substantially.[156][157]
Whether MGM could avoid voluntary or involuntary bankruptcy had been a topic of much discussion in the film industry. MGM had to repay a $250-million line of credit in April 2010, a $1-billion loan in June 2011, and its remaining US$2.7 billion in loans in 2012.[156] In May 2009, MGM's auditor gave the company a clean bill of health, concluding it was still on track to meet its debt obligations.[154] At that time, the company was negotiating with its creditors to either extend the debt repayment deadlines or engage in a debt-for-equity swap.[154] Industry observers, however, questioned whether MGM could avoid aChapter-11 bankruptcy filing under any circumstances, and concluded that any failure to conclude the negotiations must trigger a filing.[158] MGM and its United Artists subsidiary were now producing very few films each year, and it was widely believed that MGM's solvency would depend on the box-office performance of these films (especiallySkyfall).[156][159] There was some indication thatRelativity Media and its financial backer, Elliott Associates (ahedge fund based in New York), had been acquiring MGM debt in an attempt to force the company intoinvoluntary bankruptcy.[153][160]
On August 17, 2009, chief executive officerHarry E. Sloan stepped down and MGM hired Stephen F. Cooper as its new CEO,[6][161][162] a corporate executive who guidedEnron through its post-2001 bankruptcy and oversaw the restructuring and growth ofKrispy Kreme in 2005.[156][163][164] Expectations were that Cooper was hired to act quickly on MGM's debt problems.[156][163] On October 1, 2009, the studio's new leadership negotiated aforbearance agreement with its creditors under which interest payments due from September to November 2009 did not have to be paid until December 15, 2009.[165]
MGM stated in February 2010 that the studio would likely be sold in the next four months, and that its latest film,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.[166]
MGM Holdings, Metro-Goldwyn-Mayer and 160 affiliates filed for Chapter 11 bankruptcy on November 3, 2010, with a prepackaged plan for exiting bankruptcy which led to MGM's creditors taking over the company.[167] On December 20, 2010, MGM executives announced that the studio had emerged from bankruptcy.Spyglass Entertainment executivesGary Barber andRoger Birnbaum became co-Chairs and co-CEOs of the studio.[168][169]
Post-bankruptcy era
On January 4, 2011, MGM and Weigel Broadcasting announced plans to distributeMeTV nationwide.[170][171] On February 2, 2011, MGM namedJonathan Glickman to be the film president of MGM. Six days later, MGM was finalizing a distribution deal with Sony Pictures Entertainment to handle distribution of its films worldwide, including the two upcoming Bond filmsSkyfall andSpectre, and MGM having the right to be co-financier on selected Sony films, such asThe Girl with the Dragon Tattoo. The deal was finalized on April 13, 2011.[172] 20th Century Fox's deal with MGM handling its library distribution worldwide was set to expire in September 2011.[173][174] However, the deal was renewed and extended on April 14, 2011[175] and, after five years, was renewed and extended again on June 27, 2016. It was expired in June 2020[176] due toDisney's acquisition of 21st Century Fox's properties (including 20th Century Fox) in 2019.
MGM moved forward with several upcoming projects, including remakes ofRoboCop andPoltergeist[177][178] (theRoboCop andPoltergeist remakes were released in 2014 and 2015, respectively), and released their first post-bankruptcy film,Zookeeper, which was co-distributed by Columbia Pictures on July 8, 2011. The new MGM, under Barber and Birnbaum's control, focuses on co-investing on films made by another party, which handle all distribution and marketing for the projects. MGM handles international television distribution rights for the new films as well as its library of existing titles and also retains its in-house production service.[179] In separate 2011 deals, the rights to MGM's completed filmsRed Dawn andThe Cabin in the Woods were dealt toFilmDistrict as well asLionsgate Films, respectively.[180][181]
On October 3, 2012, Birnbaum announced his intention to exit his role as an MGM executive and return to "hands-on" producing. He will remain with the studio to produce films on "an exclusive basis".[182] In December 2012, Denkert retired as co-president of MGM on Stage after producing five Broadway and West End plays.[129] In May 2014, MGM introducedThe Works, a channel available in 31 percent of the country, including stations owned by Titan Broadcast Management.[183]
In 2013, the Orion brand was revived as a television production label for a syndicated court show. The Orion Pictures name was extended in fourth quarter 2014 for smaller domestic and international video on demand and limited theatrical releases.[184]
In March 2017, MGM announced a multi-year distribution deal withAnnapurna Pictures for some international markets and including home entertainment, theatrical and television rights.[185] Later on October 31, 2017, the two companies formed a US distribution joint venture called Mirror Releasing. However, this partnership will not be exclusive to all MGM films, as several of them will continue to be released through existing studio partners, such asWarner Bros. andParamount. It also does not include newly relaunchedOrion Pictures.[186] On February 5, 2019, Annapurna and MGM rebranded and expanded their US distribution joint venture asUnited Artists Releasing, marking another revival of the United Artists brand, with the Orion Pictures distribution team and films joining the venture. The decision was made to coincide with the United Artists brand's 100th anniversary.[187]
Following theHarvey Weinstein sexual abuse allegations in October 2017, MGM was listed as one of 22 potential buyers interested in acquiring The Weinstein Company.[188] 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 ofLatham and Watkins, was appointed as chief operating officer. On March 19, 2018, MGM Holdings announced that Barber had been fired by the studio's board of directors. MGM gave no reason for his firing. For the interim, the company would be led by the newly formed "Office of the CEO".[189]
In April 2019, MGM signed a two-year, first-look deal for films with Smokehouse Pictures, owned byGeorge Clooney and Grant Heslov. The deal's first film is a yet-to-be-namedJohn DeLorean film based on journalistAlex Pappademas'Epic magazine article "Saint John", written by Keith Bunin and Clooney as director with a possibility of starring.[190]
In April 2019, MGM made a multi-film non-exclusive creative partnership withAGBO Films to co-develop, co-produce and co-finance a slate from the MGM library. The deal includes a new film projects joint development fund with the first film under the deal to be a remake ofThe Thomas Crown Affair.[191]
MGM agreed to a $100 million co-financing slate deal withBron Creative in June 2019. The slate consisted of at least nine films including three Orion Pictures films.[192]
MGM was one of the first studios to delay the films, includingNo Time to Die, due to theCOVID-19 pandemic. This was followed by an April 2020 layoff of 7% of employees.[193]
A shuffle of top executives occurred in the first four months. Glickman left in January 2020 and replaced by Michael De Luca as chairman of the motion picture group. A motion picture group president, veteran executive and producerPamela Abdy, was named in early April. Co-presidents of production Cassidy Lange, Adam Rosenberg left by May 1, 2020.[194]
In May 2020, MGM made an investment, facilitated by its television group, in Audio Up podcast production studio, platform and network. Audio Up would also produce 5 podcasts per year for MGM and agreed to an exclusive first look for its works.[195] Later that month, MGM agreed to a two-year film and television first-look development deal with Killer Films.[196]
In 2013 and 2015,Starz Entertainment signed exclusive film licensing agreements with MGM for 585 movies and 176 television series. In August 2019, Starz found an MGM-owned film,Bill & Ted's Excellent Adventure, covered by the agreement to be streaming onAmazon Prime Video, and had it pulled. Starz pressed them and MGM admitted in November that 244 films and television series were being shown on other platforms includingEpix. MGM indicated that month that the license tracking system was fixed; Starz instead found an additional 100 MGM films on other platforms. With this seeming to diminish their channel's value to cable operators, Starz sued on May 4, 2020, to uncover all contract violations.[197]
Amazon subsidiary
The corporate monogram print logo of MGM used from 2021 to 2024. It remains in use, however, for the studio's licensed physical media releases and as the logo ofMGM+.
In December 2020, MGM began to explore a potential sale of the studio, with theCOVID-19 pandemic and the domination of streaming platforms due to the closure of movie theaters as contributing factors. The company hiredMorgan Stanley and LionTree Advisors to handle the process on behalf of the studio.[198][199] On May 17, 2021, online retail and technology companyAmazon entered negotiations to acquire the studio. The negotiations were made directly with MGM board chairman Kevin Ulrich whoseAnchorage Capital Group is a major shareholder.[200][201] On May 26, 2021, it was officially announced that MGM would be acquired by Amazon for $8.45 billion, subject to regulatory approvals and other routine closing conditions; with the studio continuing to operate as a label under Amazon's existing content arm, complementingAmazon Studios andAmazon Prime Video.[10] On March 15, 2022, Amazon secured an unconditionalEuropean Union (EU) antitrust approval for its proposed acquisition of MGM.[202]
On February 8, 2022,Paul Thomas Anderson'sLicorice Pizza became the studio's first fully produced, marketed and distributed film to be nominated for the Academy Award for Best Picture in 33 years, after 1988'sRain Man.[203] On March 17, Amazon finalized the merger.[204] Later that day, Amazon Studios and Prime Video SVP Mike Hopkins revealed that Amazon will continue to partner with United Artists Releasing, which will remain in operation to release all future MGM titles theatrically on a "case-by-case basis," while "all MGM employees will join my organization." It was also revealed that Amazon had no plans to make changes to the studio's production slate and release schedules nor make all MGM content exclusive to Prime Video, providing some hope that the studio would operate autonomously from Amazon Studios. These plans are expected to not impact the future of the James Bond franchise and its creative team. Twotown halls further detailing MGM's future post-merger took place on March 18, which included one for MGM employees and one for Amazon Studios/Prime Video employees.[205] Both revealed the new interim reporting structure as part of Amazon's "phased integration plan", which would involve De Luca,Mark Burnett (Chairman ofMGM Worldwide Television) andCOO Chris Brearton reporting to Hopkins on behalf of the studio.[206] On March 22, the studio made its first post-merger acquisition withLuca Guadagnino'sBones and All, for which the studio purchased the global distribution rights.[207] On April 27, 2022, it was announced that De Luca and Abdy would leave the studio for Warner Bros. A few months later, in August, it was announced MGM and Warner Bros. had signed a multi-year pact to distribute MGM's titles internationally outside North America, both theatrically in international territories and on home video worldwide, beginning withBones and All andCreed III. The deal however excludes the filmsTill,Women Talking, and the 26th Eon-produced James Bond film, which would be distributed byUniversal Pictures, with whom MGM had an international distribution deal earlier.[208][209][210] On November 30, 2022, it was announced that Jennifer Salke, head of Amazon Studios, will be given full control of MGM's film and television divisions, with Brearton stepping down as COO to become the Vice President of PVS Corporate Strategy forMGM+ and MGM Alternative Television.[211] On March 4, 2023, it was revealed that Amazon had shut down United Artists Releasing's operations and folded it into MGM, amid the decision to release Amazon Studios'Air into theaters instead of Prime Video amidst 2024 Oscar buzz. This madeCreed III the first film released and distributed by MGM itself under the new parent company instead of UAR.[212] On March 22, 2023, longtime MGM distribution head Erik Lomis died.[213]
In May 2023, Amazon Studios created Amazon MGM Studios Distribution, an internationalfilm and television distribution unit for both MGM and Amazon projects. The first MGM films from the new distributor wereSaltburn, which premiered at theTelluride Film Festival on August 30, 2023, andSitting in Bars with Cake, which was released on Prime Video on September 8, 2023.[214] On October 4, 2023, Pablo Iacoviello, Amazon's director of monetization for local originals, announced at the TV forum Iberseries & Platino Industria inMadrid that Amazon Studios would be renamed to Amazon MGM Studios itself to reflect this.[12] On September 17, 2023, Orion Pictures'American Fiction earned the studio its first win for thePeople's Choice Award at that year'sToronto International Film Festival.[215] In January 2024, Amazon announced hundreds of layoffs across Amazon MGM Studios, Prime Video andTwitch in order to "prioritize our investments for the long-term success of our business, while relentlessly focusing on what we know matters most to our customers," according to Mike Hopkins.[216]
In March 2024, beginning with the Prime Video release of the remake ofRoad House, the studio kicked off thecentennial anniversary celebration of its founding, with a "100 Years" logo variant appearing on titles produced by MGM throughout the year. In April 2024, the studio, in collaboration withFandango at Home,Rotten Tomatoes andiTunes, offered customers a "100 Essential Movies" bundle of 100 films from its library as part of their centennial for a limited time.[217] In September 2024, Amazon MGM Studios and Prime Video became the seventh member of the MPA, marking MGM's return to membership for the first time since 2005.[218]
Headquarters
Since August 22, 2011, MGM's headquarters have been inBeverly Hills, California,[219] where it rents space in a six-story office building. The 144,000-square-foot (13,400 m2) facility was originally built for theWilliam Morristalent agency, but had remained all but unoccupied because of the agency's merger withEndeavor Talent Agency in April 2009. MGM planned to house a private theater and a private outdoor patio in the building.[220]
MGM Tower, former company headquarters highlighted by the famousLeo the Lion logo at the top
The company's current headquarters on Beverly Drive in Beverly Hills with the MGM sign above the entrance
Prior to 2003, MGM's headquarters were in the Colorado Center inSanta Monica, California,[221][222] occupying at least 150,000 square feet (14,000 m2). In 2000, it announced it was moving its headquarters to a new building inCentury City that was to be the first high-rise inLos Angeles to be completed in the 21st century. When the company agreed to be its lead tenant halfway through the building's design process, it became identified asMGM Tower,[223] planned for a 2003 opening.[220] When MGM moved into the lavishly appointed spaces[221] devised byAlex Yemenidjian, former MGM chairperson and chief executive, Roger Vincent and Claudia Eller observed in theLos Angeles Times that "Yemenidjian spared no expense in building out the studio's space with suchLas Vegas-style flourishes as towering marble pillars and a grand spiral staircase lined with a wall of awards."[220]
Architect Scott Johnson designed the bottom third of the tower with extra-large floors so MGM executives could have outdoor decks. No expense seemed to be spared—from imported Italian marble for MGM's offices, to the company's exclusive use of a private garage, security checkpoint, and elevator bank, all to enable visiting celebrities discreet entry and exit. One of the tower's three screening rooms was a 100-seat theater on the ground floor (later taken over byInternational Creative Management in December 2010). The 14th-floor lobby housed the executive suites and a wall of Oscar statuettes forAcademy Award-winning films. The street leading to the building's garage was renamed MGM Drive and a large MGM logo, illuminated at night, crowned the building. As of December 2010, MGM was renting 200,000 square feet (19,000 m2) in MGM Tower at a cost of almost $5 per square foot per month.[220]
Emerging from bankruptcy protection in 2010, MGM announced that it planned to move its headquarters to Beverly Hills as part of an effort to resolve almost $5 billion in debt, since the lease in Century City was not scheduled to expire until 2018. Vincent and Eller said that MGM's per-square-foot monthly rent would be far lower in the Beverly Hills building than in MGM Tower. Larry Kozmont, a real estate consultant not involved in the process, said, "It's a prudent move for them. Downsizing and relocating to a space that is still prominent but not overly ostentatious and burdened by expenses is fundamental for their survival."[220] MGM vacated its namesake tower on August 19, 2011.[219]
The studio's officialmotto, "Ars Gratia Artis", is aLatin phrase meaning "Art for art's sake".[224][225][226][227] It was chosen byHoward Dietz, the studio's chief publicist.[228][229][230] The studio's logo is a roaring lion surrounded by a ring of film inscribed with the studio's motto. The logo, which featuresLeo the Lion, was created by Dietz in 1916 for Goldwyn Pictures and updated in 1924 for MGM's use.[228][231][232] Dietz based the logo on his alma mater'smascot, theColumbia University lion.[228][230][233][234] Originally silent, the sound of Leo the Lion's roar was added to films for the first time in August 1928.[227]
In the 1930s and 1940s, the studio billed itself as having "more stars than there are in heaven", a reference to the large number ofA-list movie stars under its contract.[232][235][236] This second motto was also coined by Dietz[237][238][239][240] and was first used in 1932.[241]
The current MGM logo, unveiled in 2021. This intro replaced the previous live versions of Leo the Lion with a CGI version. The Amazon byline was added in 2023.
On March 8, 2021, the studio unveiled a rebrand, centered on the "Ars Gratia Artis" motto, across its social media and marketing platforms, including a photorealistic CGI version of its Leo the Lion emblem and logo, also introducing a new print logo for television, digital, and film posters, phasing out the static MGM logo in favor of simply the company's initials, done in the company's longtime typeface. This was to make the studio's name more recognizable when viewed at a small size.
As of September 2023, this version of the logo is also being used to represent Amazon MGM Studios at the start of films produced and/or distributed by the parent company without MGM's involvement after retiring their own 2016–2023 on-screen logo as a result of their rebrand.[242]
Following his brief ownership of the company in 1986, Ted Turner formedTurner Entertainment Co. as a holding company for the pre-May 1986 MGM film and television library and pre-1950 Warner Bros. film library which he retained.[243] For several years after the sale, MGM continued to distribute home video releases of those films under license from Turner, though in 1990 it sold all of its home video distribution rights to Warner Bros.[244] After Turner's holdings were purchased by Time Warner Entertainment in 1996,[245] the rights for the Turner-owned films were reassigned toWarner Home Video in 1999 when MGM ended their distribution deal with Warner Home Video,[244][246] though Turner Entertainment, as a subsidiary ofWarner Bros. Discovery (WBD), remains the credited copyright holder.
Domestically, MGM currently distributes its own films and others it acquires from third parties throughAmazon MGM Studios Distribution, as well as films produced by the relaunches of Orion Pictures and American International Pictures, and the 2024 iteration of United Artists. They were previously distributed byUnited Artists Releasing, the former Mirror Releasing, from 2019 to 2023.[187] Internationally, MGM's films are currently distributed byWarner Bros. Pictures, following a four-year deal withUniversal Pictures mostly throughUnited International Pictures (UIP), of which MGM is a former member (see below).
From 1924 to 1973 (worldwide) and 1981 to 2010 (domestically), MGM has theatrically distributed most of its movies entirely in-house, as well as those of United Artists after July 1981 and Orion Pictures after April 1997. In October 2017, seven years after shutting down their major distribution operations, MGM re-entered US theatrical distribution by launching an American joint venture withAnnapurna Pictures that will share distribution financing between the two companies and release certain MGM and Annapurna films, beginning withthe 2018 remake ofDeath Wish.
There were also periods when MGM outsourced distribution to other companies. From 1973 to 1981, United Artists distributed MGM's films in North America whileCinema International Corporation released them overseas. In 1981, United Artists' international arm was combined by CIC to form United International Pictures. MGM's arrangement with that company lasted until 2000, when it made an arrangement with 20th Century Fox for international distribution. From 2005 to 2016, the Columbia TriStar Motion Picture Group (laterSony Pictures Entertainment Motion Picture Group) has distributed certain films. From 2006 to 2010,Alliance Films handled Canadian distribution of some of its products. From 2019 to 2022, Universal Pictures International distributed MGM films overseas.
From 2006 to September 2008, MGM distributed films produced or acquired by The Weinstein Company (TWC). Weinstein preferred the deal brought carriage onShowtime. Prints and marketing were paid for by TWC, while MGM was paid for booking theaters. With TWC agreeing to a direct deal with Showtime and MGM not intending to renew the distribution deal, TWC and MGM agreed to end the distribution deal three months early in September 2008.[136]
Other international arrangements
In 2012, MGM signed a deal withForum Film to release its films in Poland, Hungary, Romania, Bulgaria and Israel; Forum Film has also been known to release some of MGM's films in Czech Republic/Slovakia. That same year, in Denmark, Sweden and Norway, MGM arranged to get its films distributed throughAB Svensk Filmindustri,[247] which was renamed toSF Studios in 2016. Also in 2012, it arranged to have its films distributed byFS Film[248] (nowSF Film Finland) to release its films in Finland and withZON Lusomundo[249] (nowNOS Audiovisuais) to release its films in Portugal.
In 2018, for select films, MGM arranged international distribution withEntertainment One (for the Canadian market), Vertigo Releasing (for the UK market), Rialto Distribution (for the Australian market), Ascot Elite Entertainment Group (for the Swiss market), BF Distribution (for the Argentine market),Dutch FilmWorks (for the Dutch market), Kinepolis Film Distribution (for the Belgian film market), Odeon (for the Greek market),OctoArts Films (for the Filipino market),Universum Film (for the German market),Filmax International (for the Spanish market), Hollywood International Film Exchange/Big Screen Entertainment Group (for the Chinese market),Shaw Organisation (for the Singaporean market), andShowgate (for the Japanese market).[250][251][252]Paramount Pictures distributed the 2018 remake ofDeath Wish for the French market.[250][251][252]
^WB retained a pair of features from 1949 that they merely distributed, and all short subjects released on or after September 1, 1948, in addition to all cartoons released on or after August 1, 1948.
^abcdefBrowne, Ray B.; Browne, Pat (2000).Defining Concise Guide to United States Popular Culture. Bowling Green, Ohio: Bowling Green State University Popular Press.ISBN0879728213.
^Critchlow, Donald T. (2013).When Hollywood Was Right How Movie Stars, Studio Moguls, and Big Business Remade American Politics. Cambridge University Press. pp. 26–27.
^Robert T. Elson (1985). Duncan Norton-Taylor (ed.).Time Inc: The Intimate History of a Changing Enterprise, 1960–1980 (1st ed.). New York: Atheneum.ISBN0689113153.
^Diamond, Edwin.The Power Vacuum at Time Continues.New York. October 23, 1972.
^Business Week Edition-2304-2311 McGraw-Hill-1973. p. 57.
^abcFabrikant, Geraldine (June 7, 1986)."Turner To Sell Mgm Assets".The New York Times.Archived from the original on February 15, 2017. RetrievedAugust 6, 2014.
^Special toThe New York Times (October 29, 1986)."A President For MGM/UA –".The New York Times.Archived from the original on January 22, 2012. RetrievedDecember 15, 2011.
^"UA Changing Name To MGM/UA Comm".Variety. July 16, 1986. p. 3.
^"It's MGM/UA Again".Variety. September 10, 1986. p. 3.
^"MGM/UA, Par, Universal Team To Market U.S. Products In China".Variety. June 3, 1987. p. 6.
^abRothman, Matt; Ayscough, Suzan (December 23, 1992)."Carolco board OKs MGM deal".Variety.Archived from the original on June 27, 2018. RetrievedMarch 18, 2019.
^"Years of Hits, Misses Comes to Close."Daily News of Los Angeles. July 10, 1997; Bates, James. "MGM Lays Off 85 in Metromedia Film, TV Units."Los Angeles Times. July 11, 1997.
^At least one other major news outlet claims the debt service is $300 million a year. See: Barnes, "MGM Replaces Chief Executive",The New York Times, August 18, 2009.
^Peter Bart EVP and Editorial Director @MrPeterBart (August 18, 2009)."Town reacts to MGM's new lionkeeper".Variety.Archived from the original on August 23, 2009. RetrievedJuly 20, 2014.
^Welsh, James M.; Cahir, Linda Costanzo (2006).Literature Into film: Theory and Practical Approaches. Jefferson, North Carolina: McFarland.ISBN0786425970.
^abWayne, Jane Ellen (2004).The Golden Girls of MGM: Greta Garbo, Joan Crawford, Lana Turner, Judy Garland, Ava Gardner, Grace Kelly, and Others (Reprint ed.). New York: Carroll & Graf.ISBN0786713038.
^Sheed, Wilfrid (2008).The house that George Built: With a Little Help from Irving, Cole, and a Crew of About Fifty (1st ed.). New York: Random House.ISBN978-0812970180.
^abSilvester, Christopher (1998).The Grove Book of Hollywood (1st ed.). New York: Grove Press.ISBN0802138780.
^Fordin, Hugh (1996).M-G-M's Greatest Musicals: The Arthur Freed Unit (1st ed.). New York: Da Capo Press.ISBN0306807300.
^Stillman, William; Scarfone, Jay (2004).The Wizardry of Oz: The Artistry and Magic of the 1939 M-G-M Classic (Revised ed.). New York: Wayne State U.P.ISBN1557836248.
^Fleming, E.J. (2005).The Fixers: Eddie Mannix, Howard Strickling, and the MGM Publicity Machine. Jefferson, North Carolina: McFarland & Co.ISBN0786420278.
Rempel, William C. (2018).The gambler : how penniless dropout Kirk Kerkorian became the greatest deal maker in capitalist history. New York, NY, USA: HarperCollins.ISBN9780062456779.
Further reading
Altman, Diana (1992).Hollywood East: Louis B. Mayer and the Origins of the Studio System. Carol Publishing.
Crowther, Bosley (1957).The Lion's Share: The Story of an Entertainment Empire. E. P. Dutton and Company.
Dixon, Wheeler Winston (2012).Death of the Moguls: The End of Classical Hollywood. New Brunswick, New Jersey: Rutgers University Press.ISBN978-0-8135-5377-1.
Eames, John Douglas (1975).The MGM Story. Octopus.
Vieira, Mark A. (2008).Hollywood Dreams Made Real: Irving Thalberg and the Rise of M-G-M. Abrams.
International Directory of Company Histories, Volume 25. Detroit: St. James Press. 1999.ISBN9781558623675.
