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Other companies have kicked the tires on MGM at various points during a stop-and-start sales process that has been dragging on for months. Industry insiders say that the true value of the studio is more in the $5 billion to $6 billion range along with the assumption of some debt. Even then, they are skeptical that MGM’s prize asset, its stake in the 007 franchise, can be properly monetized.
That’s because of the unprecedented creative control that’s held by Eon Productions and its owner the Broccoli family, who have been stewards of the film series dating back to Bond’s first on-screen appearance in 1962’s “Dr. No.” Under a deal first hammered out by Albert “Cubby” Broccoli, MGM has the right to finance and distribute all of the Bond movies and splits the profits with EON. However, Broccoli’s heirs and Eon’s chiefs, Barbara Broccoli and her half-brother Michael G. Wilson, still have final say on everything from the film’s marketing and distribution plans to whoever will slip into Bond’s tuxedo when Daniel Craig hangs up the role.
Insiders believe that Broccoli and Wilson would likely nix any plans to debut Bond films on Amazon’s streaming service Prime Video and would insist on a theatrical release, as is their contractual right. That was a key stumbling block when MGM briefly floated the possibility of selling the COVID-delayed Bond sequel “No Time to Die” to Apple for north of $600 million. The producers have also been resistant to have Bond pop up in spinoffs or television shows, the kinds of ancillary properties that could prove highly lucrative. Moreover, the films have been heavily licensed to cable networks and streaming platforms, which could complicate matters.
“If Barbara isn’t on board with this, things could be very difficult,” says an executive who has worked on Bond films.
Moreover, the franchise is in transition. Craig is leaving the role after five films and there is real concern that his hard-living womanizer character may not have as much resonance with younger generations. That’s problematic given that much of the value of MGM is banked on Bond continuing to seduce audiences for years to come.
But MGM’s brass appears to be undeterred. Two weeks ago, Michael De Luca, chairman of the company’s motion picture group, and other executives made a formal presentation to Amazon. The PowerPoint was viewed by Mike Hopkins, senior VP of Amazon Studios and Prime Video, who is an advocate for the deal. One person in the know said the parties are in an exclusive negotiating window.
Representatives from Amazon and MGM did not immediately respond to requests for comment.
Other companies have been down this road with MGM before only for talks to collapse. MGM was talking to Apple in early 2020 before COVID upended the landscape, and other legacy studios took a look at the company.
The timing may work to MGM’s advantage. AT&T is spinning off WarnerMedia and combining it with Discovery, substantially enhancing that company’s content offerings at a time when it is trying to attract more subscribers for HBO Max. That may leave other rivals looking to buy content producers, and MGM, along with Lionsgate and AMC, is among the few digestible media properties that might be on offer.
The sale process has been on and off because board chair Kevin Ulrich, whose hedge fund Anchorage Capital is a major shareholder, isn’t convinced he wants to sell even as MGM’s other investors are pressuring him to cash out at a time when streamers are looking to bolster their content arsenals.
Goldman Sachs, JP Morgan and Morgan Stanley have represented MGM at various times in the past few years and the whole process has been “weird,” according to an insider, owning to a combination of aggressive bankers and investors with different agendas.
“It’s been like people saying ‘My home is not for sale but what would you pay me for it? Oh no, it’s not for sale,” as one person described it.
Under De Luca, the film side of MGM has been making the kind of splashy acquisitions that could position it for a sale, lining up projects like Paul Thomas Anderson’s “Soggy Bottom” and Ridley Scott’s “House of Gucci.” Sources said the $9 billion valuation banks a lot on MGM’s upcoming slate generating strong box office returns and TV licensing revenue.
The real value of MGM is its library, though it has been heavily exploited. The company boasts 4,000 film titles, including classics and hits such as “Four Weddings and a Funeral,” “Silence of the Lambs,” “The Birdcage” and “Stargate.” Many of its most popular films, such as “Rocky” series, have already been rebooted as the “Creed” films, or failed to be revived, as was the case with “Ben-Hur” and “RoboCop.” Other franchises, such as Peter Jackson’s “The Hobbit,” have wrapped up.
The company has had success on television, producing the likes of “Fargo” and “The Handmaid’s Tale,” as well as in the unscripted realm with “The Voice” and “Survivor,” but rival studios were still astonished by the $9 billion price tag. Sources noted that four years ago, Amazon paid $13.7 billion for the entirety of the Whole Foods supermarket chain, only a few billion more than it may pay for MGM.
But then James from MI6-HQ throws in this potentially interesting complication:
I was not aware of that. Would be interesting if Amazon tried to insist on this clause.
after a cinema release, NTTD might have an earlier release on Amazon Prime ?
https://wsj.com/articles/amazon-nears-deal-to-buy-hollywood-studio-mgm-11621880759
An agreement could be announced as early as this week.
I don't think that seems likely, unless Eon eventually sell too, in which case it's only the end of the beginning for Bond.
I guess this is all subject to regulatory approval anyway.
Well at-least "James Bond" is trending on Twitter!!!
My thoughts about basically every negative comment that pops up about this are: "They would be idiots if they..."
"... got rid of the Leo."
"... took Bond out of theatres."
"... tried any kind of vertical integration with their pre-owned IP."
and so on.
Now we only have to figure out whether their idiots or not ^^
I wonder if we will see the old movies at no cost on Prime- I bet there's probably some extra complicated ownership of them which would stop that in some way! In theory I guess a lot of MGM stuff could appear on there pretty quickly?
Plus, EoN still has the final word on everything speaking about future productions. I’m happy we finally got rid of all MGM’s financial problems, at last. And of course we will still get Leo.
Exactly.
I see a lot of negative reaction to this deal. But it's all going to be a positive:
I think that had already started to unravel.
As long as BB is alive I don’t think she will ever sell. After... that’s highly likely.
Nah it'll be a roaring face of Jeff Bezos
Anything's possible, but Broccoli is a major player in BAFTA and I'd be surprised if she gave up her position in the British film industry any time soon. This deal won't have been anything which Eon instigated or probably even took much part in, so I don't think it's a sign of anything just yet. But we don't know these people of course, who knows.
I'm happy too. At last , MGM's financial woes won't be the reason for Bond delays.
First cinema release, after 4-6 months (or even 12-13 months like in time of VHS) on BD, 4KBD (and then 2 months later on there own website, but not for me. I am only intrest in cinema and BD release.). Then 2-3 years after release in cinema premiere on open tv channel.
In general this means that MGM/Universal/Amazon or MGM/Warner/Amazon making the movie and Warner release it on BD/4KBD. First option be best in this case (and wil be second movie after NTTD made with help of Universal), with problems of Warner releases in The Netherlands and Dutch part of Belgium because MGM/Universal deside what we get and not Warner (MGM wil be over ruled by them as happend with release of Tomb Raider 2018).
But fact that Warner already release Universal and MGM titles (With permission of Universal who take job over from Fox) and Universal saying goodby to Paramount (who are released by Dutch company) i have feeling Bond 26 wil be made by MGM/Warner. It mean that Universal on this moment owns Bond but let re-release the movies by Warner, NTTD wil be released in cinema by MGM Universal (Like DAD was MGM/Fox and CR MGM Sony) and released on BD/4KBD by MGM/Universal/Warner with MGM/Universal deside what there going to be on it (Where QOS/SF/SP was released by MGM/Sony/Fox).
Whyle i must at to the above is that if iam correct Amazon must making a deal with Warner too, because there having there own Tv channel/streaming named HBO. It look like same as MGM/United Artist/Fox did for Goldeneye, Tomorrow Never Dies and The World Is Not Enough for example with Amazon replacing United Artist, but who replacing Fox then.
Or is even possible that MGM/Amazon have difrent partners each time. For example MGM/Amazon making Bond 26 (and Beyond) with Lions Gate (if not Warner or Universal) and that mean that in best case Belga Home Video release it like also with The Hunger Games,Knives Out, Now You See Me 2 or Sicario for example. (or worse case by DWF Who release The Hitman Bodyguard because it take place in The Netherlands or by Eone who release Now You See Me).
I hope it just means there is more financial support so we hopefully get a consistent stream of Bond every 3 years or so. I wouldn't really want TV series and spin offs, just focus on our man Bond
Thankfully they didn't agree this deal this time last year, otherwise we might have been watching NTTD on Amazon Prime
Yes I think we're all guessing what this could mean to some extent as it's so complicated, but I think in terms of creativity Eon stay in control but we have seen before that the studio does have input (which is probably fair enough if it's their money!) so even on that side of things: it's complicated! :)