Metro-Goldwyn-Mayer
Metro-Goldwyn-Mayer Studios, Inc. (also known as Metro-Goldwyn-Mayer Pictures, commonly shortened to MGM),[1] is an American media company specializing in film and television production and distribution. Founded on April 17, 1924, and based in Beverly Hills, California,[2] it is owned by the Amazon MGM Studios subsidiary of Amazon.
"MGM" redirects here. For the divested Las Vegas–based hotel and casino company, see MGM Resorts International. For other uses, see MGM (disambiguation).Metro-Goldwyn-Mayer
April 17, 1924
4
Worldwide
Jennifer Salke (Chairwoman and CEO)
4,200 (2022)
- MGM Television
- MGM+
- MGM Music
- MGM Sports
- MGM On Stage
- MGM Consumer Products
Rede Telecine (12.5%)
MGM was formed by Marcus Loew by combining Metro Pictures, Goldwyn Pictures and Louis B. Mayer Pictures into one company.[3][4] 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 popular musical films and winning many Academy 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 of Ben Hur. It divested itself of the Loews movie theater chain and, in 1956, expanded into television production.
In 1969, businessman and investor Kirk Kerkorian bought 40% of MGM and dramatically changed the operation and direction of the studio.[5] He hired new management, reduced the studio's output to about five films per year, and diversified its products, creating MGM Resorts International as a Las Vegas–based hotel and casino company (which it later divested in the 1980s). In 1980, the studio acquired United Artists. In 1986, Kerkorian sold MGM to Ted Turner, who retained the rights to the MGM film library, sold the studio lot in Culver City to Lorimar, 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 purchasing Orion Pictures and the Samuel Goldwyn Company, including both of their film libraries. Finally, in 2004, Kerkorian sold MGM to a consortium that included Sony Pictures.
In 2010, MGM filed for Chapter 11 bankruptcy protection and reorganization.[6][7] After reorganization, it emerged from bankruptcy later that year under its creditors' ownership. Two former executives at Spyglass Entertainment, Gary Barber and Roger Birnbaum, became co-chairmen and co-CEOs of MGM'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 for $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 major film franchises include Rocky and James Bond, while its most recent television productions include Fargo and The Handmaid's Tale.
Overview
MGM was the last studio to convert to sound pictures—nonetheless, from the end of the silent film era through the late 1950s, it was the dominant motion picture studio in Hollywood.[13][14] It was slow to respond to the changing legal, economic, and demographic nature of the motion picture industry during the 1950s and 1960s;[15][16][17] 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 investor Edgar Bronfman Sr., whose son Edgar Jr. would later buy Universal Studios. Three years later, an increasingly unprofitable MGM was bought by Kirk 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, usually United Artists. Kerkorian did, however, commit to increased production and an expanded film library when he bought United Artists in 1981.
MGM ramped up internal production, and kept production going at UA, which was continuing to thrive, particularly with the lucrative James Bond film franchise.[18] It also incurred significant amounts of debt to increase production.[19] 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 by Pathé Communications (led by Italian publishing magnate Giancarlo Parretti) in 1990, but Parretti lost control of Pathé and defaulted on the loans used to purchase the studio.[17][20] The French banking conglomerate Crédit 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, producer Frank Mancuso, and Australia's Seven Network in 1996.[22]
The debt load from these and subsequent business deals negatively affected MGM's ability to survive as an independent motion picture studio. After a bidding war which included Time Warner (the current parent of Turner Broadcasting) and General Electric (the owners of the NBC television network at the time), MGM was acquired on September 23, 2004, by a partnership consisting of Sony Corporation of America, Comcast, Texas Pacific Group (now TPG Capital, L.P.), Providence Equity Partners, and other investors.[23][24]
After its bankruptcy in 2010, MGM reorganized, with its creditors' $4 billion debt transferred to ownership. MGM's creditors control MGM through MGM Holdings, a private company. New management of its film and television production divisions was installed. The creditors have since contracted Morgan Stanley and LionTree Advisors to explore a sale.
