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Bond Movie May Die Today: MGM In Financial Trouble
MGM is a movie studio that carries $ 1.7 billion more in debt then it is valued at, and because of this financial difficulty, the James Bond franchise has been put on hold. MGM's financial troubles put several franchises at risk. James Bond and many other brand names will need money now to continue production.
Bond 23, James Bond movies at risk
Bond 23, the latest James Bond film, was in pre-production stages for a 2011 release date. The Bond 23 producers who work for MGM released a statement saying "we do not know when development will resume and do not have a release date". Though they own the merchandising and movie rights to James Bond and Bond 23, EON productions cannot fund full movie production. The longest break between Bond films has been six years -- 1989 to 1995. The latest Bond film was Quantum of Solace, released in 2008.
More than just James Bond movies at risk
Bond 23 is not the only film that MGM studios is funding. MGM is currently seeking personal loan companies to take on it $ 3.7 billion debt. MGM maintains half the rights to The Hobbit, the Lord of the Rings prequel. There are over 4,000 movie titles that MGM owns through the United Artists brand. Until some buyer emerges for MGM, the production and distribution of all MGM films are at risk.
MGM buyers are bidding against each other
Hot Tub Time Machine is the only movie MGM has put out this year, and it grossed only $ 42.2 million, a very small amount for the movie. MGM put the word out that they were looking for buyers last November. Lionsgate, Time Warner and Access Industries put in bids for the beleaguered studio. Lionsgate has pulled out of the bidding for MGM. If, for some reason, Access or Time Warner do not purchase MGM, the James Bond franchise may be in serious trouble.
Sources:
Times Online
Sydney Morning Herald
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