Mother of Mercy—Is This the End of MGM and United Artists?

[Eve]

Cut down, for copyright reasons, from The Hollywood Reporter:

LOS ANGELES, California (Hollywood Reporter) – It’s very sad. MGM is gone. So is United Artists. The deal, expected to close on Friday, for a consortium of companies (including Sony Corp.) to purchase the MGM assets for some $4.8 billion reminds us that in today’s entertainment universe, it’s all about selling DVDs. These were once mighty studios, packed with talented executives who knew how to nurture talent and release a full slate of movies every year, some of them bound for Oscar glory. It takes years to grow a global production and distribution machine, which then thrives on forward momentum: Hits yield more hits; Oscars attract more Oscar-hungry stars and directors. But it doesn’t take much to bring these monoliths down.

MGM’s slide began when Kerkorian outbid Edgar Bronfman for the studio in 1969, cannily recognizing the value of the MGM brand. At UA, troubles began when longtime chairman Arthur Krim and president Eric Pleskow sold their studio to Transamerica in 1979 after an unprecedented four-year run at both the box office and the Oscars. In 1981, Kerkorian grabbed the struggling UA for a song and merged it with MGM; nine years later, he sold the MGM/UA combined for $1.4 billion to shady Italian financier Giancarlo Parretti, who eventually wound up in jail. As Kerkorian finally closes his latest deal to sell MGM Inc. to the Sony consortium – including Providence Equity Partners, Texas Pacific Group and DLJ Banking Partners – for almost $5 billion, he will make billions; Yemenidjian and McGurk make millions.

Nobody knows quite what will become of MGM and UA. About 250 out of 1,400 employees will stay on, mostly at the home video company, while the rest cash their severance checks, switch to their home e-mail addresses and join their Miramax brethren sending out resumes. Sony will divvy up the outstanding MGM and UA titles for release through its divisions including Columbia, TriStar, Screen Gems and Sony Pictures Classics. If MGM continues to co-produce films with Sony, it’s mainly to keep the library refreshed, insiders say. The MGM and UA labels will still show up on surviving franchises like “The Pink Panther,” whose latest incarnation starring Steve Martin arrives in September. (The “Pink Panther,” James Bond and “Rocky” franchises originated at UA.)

Yes, I know all good things must end, and that MGM and UA haven’t really “been” MGM and UA for some time, but this is still so sad for a film buff like me . . . L.B. Mayer, Irving Thalberg, Doug and Mary, Chaplin and Griffith, must be spinning in their graves.

[h.sapiens]

What’s especially sad is that MGM’s last theatrical release is that cheesy “Amityville Horror” remake.

[Eve]

@h.sapiens

What’s especially sad is that MGM’s last theatrical release is that cheesy “Amityville Horror” remake.

Quite a come-down from MGM’s first movie, He Who Gets Slapped (1924).

Anyone know what UA’s first movie was?

[MovieMogul]

@Eve

Anyone know what UA’s first movie was?

The IMDB lists 4 films (including Broken Blossoms) from 1919, the year UA was formed.

[rjung]

So does this mean the MGM Grand will be renamed Sonyville or something?

[Ike_Witt]

No more lion roaring before movies? This will not stand.

[DMark]

MGM Grand will remain the MGM Grand. Kerkorian has bought and sold MGM Studios twice, and he will keep the name of his casino the same.

I know lots of people who (still) work at MGM studios. They are all pretty bummed about it, but they have known it was coming for ages…plus they have already gone through many sales in recent years. Some have been asked to stay on for anywhere from 6 months to permanent. A lot are simply tired and taking the rather nice severance pay package that was part of the sale.

The good news is that the MGM and United Artists names will not go away, despite who owns the company. They will occasionally slap those names on upcoming films (Pink Panther and the Bond films). The trademarks and copyrights will be kept in force.

And if history repeats itself, as it is wont to do, don’t be surprised if the MGM name and United Artist name are up for sale again in a few years, minus most or all of the libarary.