Hollywood studio MGM up for sale at a price of more than $5 billion

Hollywood studio MGM up for sale at a price of more than $5 billion
Renowned Hollywood studio, MGM, has reportedly put itself up for sale at a price of over $5 billion. Over the past few years, the studio has considered selling numerous times, most lately in January when a preliminary round of talks was held with Apple, Netflix, and a few others. However, the price stood as a major impediment in the transaction.

According to sources, the James Bond franchise, owned by MGM, ranks fifth as the most valuable film franchise of all times, with its 24 features films amounting to a gross valuation of more than $7 billion, behind only the Spider-Man, Star Wars, Marvel, and Harry Potter films. The franchise could be relied on to bringing in a revenue of $1 billion at the global box office, given the loyal fanbase across the world.

In the light of the pandemic, however, the upcoming Bond film, No Time To Die, which depicts Daniel Craig’s last outing as 007, has moved the release date two times with its premiere now scheduled to be held in April in the hope that movie fans will be able to make a return to movie theatres en masse.

For the record, MGM studio has a library of 17,000 hours of TV programming and 4,000 film titles, ranging from “The Hobbit” and “Gone with the Wind” to TV hits comprising “The Handmaid’s Tale”. Over the previous year, the studio has recorded a revenue of $1.5 billion. A decade ago, it was forced into bankruptcy owing to a debt of $4 billion.

MGM has now developed new franchises comprising Rocky spin-off Creed, starring Michael B Jordan. However, the studio’s crown jewel persists to be the 58-year-old evergreen James Bond franchise.

Established in 1924, Metro-Goldwyn-Mayer has frequently changed hands over the years with a huge success with films comprising “Singin’ in the Rain”, “The Wizard of Oz”, and “Ben Hur”. The owners of the studio have comprised Ted Turner, the Founder of CNN, Edgar Bronfman, the drinks magnate, and Kirk Kerkorian, the Las Vegas casino billionaire.