Sunday, October 31, 2010

MGM to declare bankruptcy

Stumbled across this story here. So MGM studios is going to declare bankruptcy this week in a deal with creditors over its multi-billion dollar amount of debt. It's sort of amazing when you think about how long this studio has been around, this quote from the article sums it up nice:

Insolvency amounts to a humiliating comedown for a studio with a back catalogue of 4,000 titles holding 205 Oscars between them


While I'm sure their attorneys are hard at work trying to push through the process quickly, it's already caused a hold up of production on some titles. Now in a perfect world this bankruptcy proceeding would be a wakeup call not just to MGM but to other studios as to how mismanagement, bloated budgets, and lack of creative thinking can lead to this financial situation. A wakeup call that would turn them away from tired sequels and remakes with overpriced stars and more focus on simply making good films.


Sadly however, we all know that we don't live in such a perfect world. 

27 comments:

  1. What? MGM? They are one of the big ones... with some many good titles! What will happen to those titles rights? are they being bought by another studio?

    This is a sad one.

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  2. that is a total shocker. seems like the entertainment is always doing good even in this economy

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  3. It goes to show just how many of these companies are essentially a pyramid scheme from the top down. The people at the top know all of this is happening months before but they are protected as long as no actual wrong doing it found, they all walk away on multi million pound share options they will sell.

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  4. Yeah, saw this on the news too, pretty sad

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  5. just the opposite. sequels are a safe bet that they know people will go see if the first one did well in the box office.

    and the tired old stars bring in a ton of viewers just because theyre in the movie. get ready for studios doing that wayyy more often

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  6. Disappointing for sure =[

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  8. MGM? That's insane. Never would have thought it.

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  9. wow even the big companies cant keep out of debt

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  10. daaaamn, the economy is dying and its all obamas fault

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  11. Bankruptcy != death. They're not going anywhere.

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  12. shocking news, you would think they are making a fortune from media distribution

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  13. You know I hope other studios get it too. I would really make more time for cinema if everything produced wasn't a sequel, remake or something from my childhood. I would be a lot happier with 3 or 4 bad new ideas and 1 good new ideas then 5 regurgitations.

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  14. That's freaking crazy mate! Bad news bears!

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