MGM

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MGM Logo [1]

Finances

After a bankruptcy declaration in 2011, Metro-Goldwyn-Mayer has regained its position as a profitable major film studio in the last five years. MGM Studios is owned by the larger parent company of MGM Holdings Inc., a company formed from what was formerly Spyglass Entertainment [2]. In 2015, the studio made $1.56 billion in revenue, resulting in an operating income of $258.78 million. This was up from $1.44 billion and $243.03 million, respectively, in 2014. 2015 was the company’s third consecutive year of posting record revenue and income. MGM Holdings’ total assets currently stand at $3.045 billion [3]. The studio has been in the process of repurchasing its stocks since its bankruptcy, and in March announced that $300 million more would be added to their repurchasing plan. The ramping up of the repurchasing plan has been taken as a sign of confidence in the company’s continued growth [4].

Recent Acquisitions

In January of 2016, MGM fully acquired the United Artists Media Group, a film and television production company that had been a joint venture with Mark Burnett, Roma Downey and Hearst Productions. MGM had acquired a 55% stake in Burnett, Downey and Hearst’s One Three Media and LightWorkers Media in September 2014, and relaunch the companies as United Artists. As of January 2016, all revenues, expenses and assets of United Artists are now consolidated under the MGM name [5].

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Gary Barber [6]

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Mark Burnett [7]

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Jonathan Glickman [8]

Executives

MGM’s three top executives are Chairman and Chief Executive Officer Gary Barber, President of the Television and Digital Group Mark Burnett, and President of the Motion Picture Group Jonathan Glickman. Barber and Glickman were previously the heads of Spyglass Entertainment, where Barber oversaw the production of a total of $5 billion in box office productions. MGM became the first studio to release back-to-back films making over $1 billion at the box office under Barber’s leadership with The Hobbit: An Unexpected Journey and Skyfall.  Burnett was named to his position in January 2016, when MGM fully acquired his United Artists company. His former United Artists co-owner Roma Downey is President of LightWorkers Media, which is now the “faith and family division of MGM Television” [9].

Current Releases

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How To Be Single [14]

MGM has only released two films thus far in 2016, both of which were coproduced with New Line Cinema and were distributed by New Line’s parent studio Warner Brothers [10] [11]. These films were How To Be Single and Barbershop: The Next Cut, both relatively small-scale but still distinctly mainstream offerings, opening in 3,343 and 2,661 theaters respectively. How To Be Single was by far the more successful, bringing in $46.8 million in domestic box office revenue and a total of $105.3 million worldwide, against a production budget of $38 million [12]Barbershop was less successful, though not necessarily a flop. It brought in $20.2 million in its opening weekend (April 15-17) against predictions in the high-$20 millions range. Its production budget has not been released to the press [13]. These films also show that MGM is willing to target underserved demographics with their films, with How To Be Single being described as attempting to be a “feminist rom-com” and Barbershop being specifically marketed towards African-Americans.

Upcoming Releases

MGM has three more coproductions with release dates in 2016, each with their own significant potential for profit.

Me Before You is slated for a June 3 release, and is a romantic drama abou a young woman (Emilia Clarke) who falls in love with a paralyzed man she is caring for (Sam Claflin) [15]. The plot description puts in squarely in the vein of other successful films like The Fault In Our Stars and Me and Earl and The Dying Girl, which also dealt with themes of serious illness and young adult romance. The film’s cast should also appeal to this young demographic, as Emilia Clarke is a rising star due to her role as Daenerys Targaryen on the HBO television show Game of Thrones (also in the film is Clarke’s Thrones co-star Charles Dance) [16], and Sam Claflin has gained fame from the Hunger Games series [17]. The film is based on the acclaimed novel of the same name by Jojo Moyes. MGM is co-producing the film with New Line Cinema (a division of Warner Bros.) and Sunswept Entertainment [18].

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Ben-Hur is the first of MGM’s two remakes of classic films in 2016, and will be released on August 19. It’s also the more outwardly risky- its director, Timur Bekmambetov, is hardly an established hitmaker, and the only big name in its cast is Morgan Freeman in a supporting role (the title role is played by the essentially unknown Jack Huston) [19]. Still, Ben-Hur has the name recognition of one of the most famous and successful films ever made, as well as the appeal of a big-budget summer blockbuster. MGM is co-producing the film with Paramount Pictures [20].

The Magnificent Seven, set for release on September 23, is a remake of the classic John Sturges Western starring Steve McQueen and Charles Bronson, itself a remake of Akira Kurosawa’s legendary Seven Samurai. The film is being directed by Antoine Fuqua (Training Day, Southpaw), and stars Denzel Washington, Chris Pratt, and Ethan Hawke, among others [21]. That combination of commercially successful director and all-star cast is a solid predictor for the film’s financial success. Pratt, especially, has been a major draw at the box office, headlining such hits as Guardians of the Galaxy and Jurassic World [22]. MGM is co-producing the film with Columbia Pictures, a subsidiary of Sony Pictures [23].

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Michael B. Jordan [28]

In Development

Future projects of MGM’s include a recently announced reboot of the Tomb Raider series, which they will coproduce with Warner Bros [24] (Daisy Ridley, star of Star Wars: The Force Awakens, has been confirmed as being in talks to star in the series) [25]. This would be the newest in a succession of recent MGM coproductions with Warner Bros., including films like the Hobbit trilogy and Creed and its upcoming sequels [26]. Other future MGM productions include a remake of the 1968 heist thriller The Thomas Crown Affair with Creed star Michael B. Jordan [27].

Conclusion

It’s not clear whether MGM will make a return to producing or distributing films by themselves, or whether they will continue serving only in a co-producer or co-distributor role, as they have since their bankruptcy. The studio has released progressively more films per year since the 2010 bankruptcy, climbing from one release in 2010 to seven in 2015 [29]. Metro-Goldwyn-Mayer is still a long way from their former position as the largest and most profitable movie studio in Hollywood [30], but the success they’ve had in their recent films and their continued financial growth bodes well for the future of the company.

[1] Koscis, James (November 10th, 2009). MGM LogoJames Koscis Design + Imaging. Retrieved: April 18th 2016.

[2] Ovide, Shira and Spector, Mike (November 5th, 2010). Everything You Need to Know about the MGM BankruptcyThe Wall Street Journal. Retrieved: April 10th 2016.

[3] Investor RelationsMGM Studios. Retrieved: April 12th 2016.

[4] Lieberman, David (March 25th, 2016). MGM Board Adds $300M To Stock Repurchase PlanDeadline. Retrieved: April 13th 2016.

[5] McNary, Dave (December 14th, 2015). Mark Burnett Named President of MGM Television. Retrieved: April 12th 2016.

[6] TodayMGM Studios. Retrieved: April 12th 2016.

[7] TodayMGM Studios. Retrieved: April 12th 2016.

[8] TodayMGM Studios. Retrieved: April 12th 2016.

[9] TodayMGM Studios. Retrieved: April 12th 2016.

[10] How to Be Single (2016)- Company CreditsIMDb. Retrieved: April 15th 2016.

[11] Barbershop: The Next Cut (2016)- Company CreditsIMDb. Retrieved: April 15th 2016.

[12] How to Be Single (2016)Box Office Mojo. Retrieved: April 10th 2016.

[13] Barbershop: The Next Cut (2016)Box Office Mojo. Retrieved: April 10th 2016.

[14] How To Be SingleIMDb. Retrieved: April 10th 2016.

[15] Titles- Me Before YouMGM Studios. Retrieved: April 17th 2016.

[16] Game of ThronesIMDb. Retrieved: April 17th 2016.

[17] Sam ClaflinIMDb. Retrieved: April 17th 2016.

[18] Me Before You- Company CreditsIMDb. Retrieved: April 17th 2016.

[19] Ben-HurIMDb. Retrieved: April 18th 2016.

[20] Ben-Hur (2016)- Company CreditsIMDb. Retrieved: April 18th 2016.

[21] The Magnificent SevenIMDb. Retrieved: April 18th, 2016.

[22] Chris PrattIMDb. Retrieved: April 18th, 2016.

[23] The Magnificent Seven (2016)- Company CreditsIMDb. Retrieved: April 18th, 2016.

[24] McNary, Dave (February 25th, 2016). Warner Bros. Joins MGM on ‘Tomb Raider’ RebootVariety. Retrieved: April 20th, 2016.

[25] Ritman, Alex (March 21st, 2016). Daisy Ridley Confirms ‘Tomb Raider’ Reboot Talks. The Hollywood Reporter. Retrieved: April 20th, 2016.

[26] McNary, Dave (February 25th, 2016). Warner Bros. Joins MGM on ‘Tomb Raider’ RebootVariety. Retrieved: April 20th, 2016.

[27] Kit, Borys (February 24th, 2016). Michael B. Jordan, MGM to Remake “The Thomas Crown AffairThe Hollywood Reporter. Retrieved: April 20th, 2016.

[28] Michael B. JordanIMDb. Retrieved: April 23rd, 2016.

[29] Metro-Goldwyn-Mayer: CompletedMovie Insider. Retrieved: April 23rd, 2016.

[30] Metro-Goldwyn-Mayer, IncEncyclopedia Britannica. Retrieved: April 23rd, 2016.

 

MGM Studios

Created by: Jess Kunkel

Metro-Goldwyn-Mayer


 

MGM Studios Inc.
245 N Beverly Dr.
Beverly Hills, CA 90210 [2]


 http://www.mgm.com/# 




 

History

MGM studios, fully known as Metro-Goldwyn-Mayer Productions was formed in 1924 when Goldwyn Pictures and Louis B. Mayer Productions combined to become the company we know so well today [5]. The company began strong and only when multiple changes in power happened in the sixties did things begin to get rocky [5]. Including their file for bankruptcy in the year 2010, the company remained a player in the game, often sharing projects with other large media companies similar to themselves to sustain and finance their more recent work efforts [8]. Nevertheless,  MGM and its never-failing Lion originally named “Slats” have undeniably created some of the greatest and best acclaimed pictures of all time.

The company was always known for the number of huge stars that it had in its early days, often referred to have “More stars than there are in the heavens”. With an astounding 175 Academy Awards the corporation is responsible for masterpieces such as The Wizard Of Oz (1939), West Side Story (1961), Rocky (1976), Annie Hall (1977), Dances with Wolves (1990), and many more. 


MGM Through The Years

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The Collection

MGM is known to have one of the most extravagant collections of film to date with more than 4,000 titles in their Library.

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Executives


Gary Barber

Chief Executive Officer and Chairman


Jonathan Glickman

Motion Picture Group, President


Roma Khanna 

Television Group and Digital , President


Kenneth J. Kay

Chief Financial officer


Financial


Although MGM filed for bankruptcy in the year 2010, the picture company has managed to remain. In 2015, MGM has financially had  a much more active year than in 2014. Compared to Q1-Q3 of last year, MGM has seen a 246% change in the their cash flow [21].  While in 2014 the cash flow was noted to be at 170.1 (millions) by the end of the third quarter, the cash flow for 2015 had increase to more than double what it was at the same time last year, at a whopping 417.9 [21].

Since 2013 MGM has dropped 9% in their third quarter revenue, with it marked at 96% in 2014 with proceeds of 233.5 (in millions), and then down even further to 91% in 2015 with revenue noted at 212.1 (in millions) [21]. However Metro-Goldwyn-Mayer’s Net income was on the upswing this third quarter. Compared to the increase of 172% from Quarter 3 in 2013-2014 with net income rising from $16.6 million to $28.6 million the third quarter took an even larger leap in 2015 [21]. With their third quarter net income rising from $28.6 million to $124 million MGM saw a 434% change from the previous year, a very positive sign for the business of MGM [21].


Metro-Goldwyn-Mayer  Today


Today MGM focuses most of their work on producing and distributing television and film around the world [3]. Their main focus as of late it to keep creating new content, and to keep  acquiring new scripts to produce, and or often is the case Co-produce, as well as to distribute.[23]. MGM is also making new deals to further distribute their films with businesses such as Tubi TV [51]. 


Recent Releases


Creed

On November 25th, 2015 MGM, partnered with Warner Brothers Studios released the film Creed (2015). The picture is a continuation of the extremely popular Rocky film series. Directed by Ryan Coogler, the sports drama made $29.6 Million in its opening weekend and was able to snag the 10th largest opening of all time [26]. In its first week, the film has already made $42 million, surpassing its budget which is noted to be at around $35 Million [26]. Creed (2015) will continue to be released around the world until early March 2016. 

As the seventh film in the Rocky series (1976), the film endeared many a Rocky fan to watch. Throughout the opening weekend it played for a 66% male crowd, and 62% being over twenty-five, and 26% aging from 35-49 years old [27]. Creed is said to have the potential for an oscar running, delightful news for the young director Coogler, and yet another Academy Award for MGM.

[50].


Spectre

Only slightly earlier in the year on November 6th of 2015 MGM studio’s, partnered with Sony Pictures released the highly anticipated film Spectre (2015) [28]. Categorized as an action – adventure – thriller, the film is a continuation of the James Bond 007 franchise [28]. Spectre was directed by Sam Mendes and starred Daniel Craig as James Bond. The film took in $70.4 million in it’s domestic opening weekend at the box office, putting Spectre in the spot as the second highest debut weekend revenue for a Bond film, falling behind Skyfall (2012) and yet slightly ahead of Quantum of Solace (2008) [30]. Having only been out a few weeks, the domestic revenue is totaled at $176.8 million as of November 30th [30]. With the Bond Franchise acquiring so many fans across the world most of the revenue is expected to come from the foreign releases of the film, from which it has already made 76.4% of it’s total revenue at $575.3 million [30]. With it’s budget at around $245 Million, the total worldwide revenue of $750 million thus  far puts MGM in a very good place moving into the weeks to come [30].

[51].


Things to Come


Being such a company, with a history of so many monumental films Metro-Goldwyn-Mayer is hoping to continue the legacy of the company’s name, looking towards the future with many new films to come having 39 titles currently in development [33].


To Name a few

Me Before you : A film based off of an acclaimed novel is expected to debut in March of 2016 [33]. The story entails a small town girl and her unlikely paralyzed friend to whom she tends, with the screenplay also being written by Jojo Moyes,the very author of the novel that originated the story [32]. The film is to be directed by Thea Sharrock, and will star Emilia Clarke, Sam Claflin, Jenna Coleman

 


 


 

Ben Hur: Currently in development at MGM is the remake of the original1959 film Ben Hur Set to debut in August of 2016, the film,  directed by Timur Bekmambetov is currently in post production. Starring Jack Huston, the film tells the tale of “A falsely accused nobleman survives years of slavery to take vengeance on his best friend who betrayed him.” [40]


 

Going In Style: Yet another film set to debut in 2016 for MGM studios is Going in Style (2016). The film is a comedy about three retired men who plan to rob a bank, and its cast is loaded with stars including Joey King, Morgan Freeman, and Michael Caine [42]. The movie is a remake of the 1979 original, and is to be directed by Zach Braff.

 


Other upcoming titles include: The Magnificent Seven (2016), Barbershop: The Next Cut (2016), The Belko Experiment (2016), A Movie Life (2016) just to name a few and many more [33]!


Overview

While the company has not fully recovered from it’s low point in 2010, executives remain confident in the strides that the company is making. While Metro-Goldwyn-Mayer is also exploring the realms of new types of media in other ways, the company is continuing it’s legacy of film and attempting to renew MGM back to it’s great esteem starting with more products being created by the company [3].



Sources


[1]. MGM Lion Logo. Metro-Goldwyn-Mayer Bing Image search. Retrieved: November 29th, 2015

[2]. MGM Studios Contact Us.  MGM Studios. Retrieved: November 20th, 2015.

[3]. MGM Studios Corporate. MGM Studios. Retrieved: November 20th, 2015.

[4].MGM Old Logo Still. Youtube Slats the Lion. Retrieved: November 29th, 2015.

[5]. MGM Studios Corporate History. MGM Studios. Retrieved: October 3rd, 2015

[6]. The Life and Times of the MGM Lion. Mental Floss. Retrieved: November 20th, 2015.

[7]. MGM stunning roster. Seeing Stars. Retrieved: November 20th, 2015.

[8]. MGM Files For Bankruptcy. New York Times. Retrieved: November 21st, 2015.

[9]. Academy Awards. Film Site. Retrieved: November 21st, 2015.

[10]. The Wizard of Oz. IMDb. Retrieved: November 21st, 2015.

[11]. West Side Story. IMDb. Retrieved: November 21st, 2015.

[12]. Rocky (1976). IMDb. Retrieved: November 21st, 2015.

[13]. Annie Hall (1977). IMDb. Retrieved: November 21st, 2015.

[14]. Dances With Wolves (1990). IMDb. Retrieved: November 21st, 2015.

[15]. MGM 90th Anniversary. Youtube. Retrieved:  November 21st, 2015.

[16]. MGM Film Collection. Park Circus. Retrieved: November 21st, 2015.

[17]. Gary Barber. MGM Studios. Retrieved: November 21st, 2015.

[18]. Johnathan Glickman. MGM Studios. Retrieved: November 21st, 2015.

[19]. Rhoma Khanna. MGM Studios. Retrieved: November 21st, 2015.

[20]. Kenneth J. Kay. MGM Studios. Retrieved: November 21st, 2015.

[21]. Investor Relations Financial Reports. MGM Studios. Retrieved: November 21st, 2015.

[22]. Cash Flow. Investopedia. Retrieved: November 21st, 2015.

[23]. Working At MGM Studios. Glass Door. Retrieved: November 21st, 2015

[24]. Creed Official Site. Creedthemovie.Retrieved: November 21st, 2015.

[25]. Ryan Coogler. IMDb. Retrieved: November 21st, 2015.

[26]. Creed (2015). IMDb. Retrieved: November 21st, 2015.

[27]. Creed Box Office. Forbes. Retrieved: November 21st, 2015.

[28]. Spectre (2015). IMDb. Retrieved: November 21st, 2015.

[29]. The Official James Bond Site. 007. Retrieved: November 21st, 2015.

[30]. Spectre box office numbers. Box Office Mojo. Retrieved: November 21st, 2015.

[31]. Pro Spectre (2015). IMDb Pro. Retrieved: November 21st, 2015.

[32]. Me Bofore You (2016). IMDb. Retrieved: November 21st, 2015.

[33] MGM Pro Projects in Development. IMDb. Retrieved: November 21st, 2015.

[34]. Thea Sharrock. IMDb. Retrieved: November 21st, 2015.

[35]. Emilia Clarke. IMDb. Retrieved: November 21st, 2015.

[36]. Jenna Coleman. IMDb. Retrieved: November 21st, 2015.

[37]. Sam Claflin. IMDb. Retrieved: November 21st, 2015.

[38]. Ben Hur (1959). IMDb. Retrieved: November 21st, 2015.

[39]. Timur Bekmambetov. IMDb. Retrieved: November 21st, 2015.

[40]. Ben Hur (2016). IMDb. Retrieved: November 21st, 2015.

[41]. Jack Huston. IMDb. Retrieved: November 21st, 2015.

[42]. Going In Style (2016). IMDb. Retrieved: November 21st, 2015.

[43]. Joey King. IMDb. Retrieved: November 26th, 2015.

[44]. Morgan Freeman.IMDb. Retrieved: November 26th, 2015.

[45]. Michael Caince. IMDb. Retrieved: November 26th, 2015.

[46]. Going in style Original (1979). IMDb.  Retrieved: November 26th, 2015.

[47]. Zach Braff. IMDb. Retrieved: November 26th, 2015.

[48]. Me Before You Official Site. Jojo Moyes. Retrieved: November 27th, 2015.

[49]. Rocky (1976). IMDb.Retrieved: November 27th, 2015.

[50]. Creed Official Trailer. Youtube-Warner Brothers.Retrieved: November 28th, 2015.

[51]. Spectre Official Trailer. Youtube- Zero Media. Retrieved: November 28th, 2015.

[52]. MGM & Lionsgate Tubi tv Deal. Deadline. Lieberman, David. November 19th, 2015. Retrieved: November 21st, 2015..