Spyglass near to closing a deal with MGM

[The Sweeney]

From the Wall Street Journal:

Spyglass Poised to Run MGM Studios

Spyglass Entertainment is nearing a deal to run Metro-Goldwyn-Mayer Inc. once the beleaguered film studio finishes restructuring a roughly $4 billion debt load later this summer, said people familiar with the matter.

MGM's creditors have hammered out financial details with Spyglass co-heads Gary Barber and Roger Birnbaum and the two sides have spent the better part of this week negotiating the makeup of MGM's new board, they said.

Messrs. Barber and Birnbaum would run MGM as co-chief executives when the studio exits a streamlined bankruptcy later this year under the plan. A group of hedge funds who now control the company's fate have identified the pair as their best choice for reversing the ailing studio's fortunes.

Under the plan, Spyglass would merge parts of its film library with the MGM library. Spyglass would receive a 4% ownership stake in the reorganized MGM, the people said. Creditors would forgive all of MGM's debt for the bulk of the restructured studio's new equity, they said.

A deal could be done as soon as this week, the people said. MGM plans to peg its value at around $1.9 billion, the people said.

Once in bankruptcy, MGM could entertain other deals under an obligation to maximize the company's value for all creditors. MGM's creditors have left open pairing with other studio rivals, including Summit Entertainment and Lions Gate Entertainment Corp. Both have made recent overtures, the people said.

MGM and Spyglass couldn't immediately be reached for comment. Summit and Lions Gate declined to comment.

http://online.wsj.com/article/SB1000142 ... lenews_wsj

[Mazer Rackham]

The Sept 15th fish or cut bait deadline might have done some good. Not a done deal yet but it would be the first positive step in well over a year.

[Omega]

This the same group EON said didn't have the budget to make Bond movies?

[Dr. No]

Getting new management is good news right? I'd hate for Bond to go under because of MGMs probelms.

[carl stromberg]

Getting new management is good news right? I'd hate for Bond to go under because of MGMs probelms.

I don't want Bond to go under, and I don't think it will. I was hoping that these difficulties continue for several years so Craig cannot make another, but perhaps that's a bit mean.

Surely only Connery could come back after a 5+ year break?

[oscartheman]

It's Monday there is no new news I assume MGM is still bankrupt,Bond 23 on hold and no script is being worked on and Daniel Craig is getting older by the moment with his face becoming more leathery looking each new moon.What happened?Wasn't Spyglass the savior of everything.Shouldn't Bond 23 shooting by now?

What a crock!Only a bunch of fan boy would start doing back flips over a alleged deal nobody actually involved with was willing to talk about.Only people deluded as the Obama Girl once was would believe the spin put on this s**t.For the pragmatists out there it was clear when the delay happened Eon automatically went in recast mode.Trouble and delays mean the death of the current Bond whoever it is.If Craig were at all serious about coming back he wouldn't be scheduling so much s**t as to make it impossible to use him again.

[katied]

Looks like there is going to be a long wait until Bond 23(barring some sort of miracle, of course.)

[Mazer Rackham]

The Spyglass deal would be ratified somewhere in the beginning of September, the full package ready to submit before or around September 15.I am surprised more hasn't leaked out. Usually we hear more when a deal it in the final stages of being hammered out.
MGM has to get moving on the Hobbit soon or face the penalties.

[bjmdds]

Bond will not go under, a deal will be done with some group, but Broccoli's arrogant fees for product placement will be a thing of the past. No person buys a car, a watch, a boat, etc., because of Cr-egg.

[katied]

Bond will not go under, a deal will be done with some group, but Broccoli's arrogant fees for product placement will be a thing of the past. No person buys a car, a watch, a boat, etc., because of Cr-egg.

Not necessarily. Some Bond fans seem to be made out of money, and there are a few who would buy something because Craig was associated with it.

[Mazer Rackham]

$160m wouldn't be bad for Bond film although they can cut them costs even more. They wasted a ton of money on the damned Opera sequence in Quark.

[Goldeneye]

Spyglass Pitches MGM a Bankruptcy Plan
By Brent Lang
Published: August 18, 2010

Spyglass Entertainment may finally get its prize.

After pursuing Metro Goldwyn Mayer for months, Spyglass executives made a presentation on Wednesday to the studio’s debt holders that involves a pre-packaged bankruptcy, an individual with knowledge of the negotiations has confirmed to TheWrap.

MGM has been laboring under $4 billion in debt, while trying to attract a buyer for much of the year. Its precarious financial situation has put lucrative franchises such as “The Hobbit” and the James Bond franchise in limbo.

If the deal goes through, it would be an ignominious end for the legendary movie studio, as it essentially amounts to MGM going into receivership. Under Spyglass' proposal, the company’s co-heads, Gary Barber and Roger Birnbaum, will get a 4 to 5 percent stake in the company following the restructuring, according to the Los Angeles Times.

Spyglass would continue to operate independently, while MGM will produce a handful of movies each year, among them Bond and “The Hobbit.” In addition, MGM boasts a library that numbers over 4,100 titles.

MGM declined to comment on the negotiations, and Spyglass did not return TheWrap’s calls.

In July, MGM asked for and received its sixth extension on a massive debt repayment. It is currently has until Sept. 15, 2010 to deliver a $250 million principal payment and over $200 million in interest to more than 100 lenders. Many of those lenders were on the conference call with Spyglass on Wednesday.

The debt-strapped studio has received only passing interest since it first went on the market Lionsgate and Len Blavatnik's Access Industries were believed to have been contenders, but the highest known bid is a $1.5 billion offer from Time-Warner.

Spyglass recently co-produced "Dinner for Schmucks," "Get Him to the Greek," and "Star Trek."

http://www.thewrap.com/movies/column-po ... plan-20246

[Kokopelli]

Beginning of the end?

[Mazer Rackham]

MGM looks to come out of this owing around $1b, with $500m capital to work with. The Hobbit will need around 400m to 500m, the most recent numbers I've seen I've forgotten what part of it MGM had to come up with. Obviously the bulk of funding is on MGM's shoulders. Given the tight budget there will be no money for Bond in 2011 or possibly 2012. They have to get the Hobbit rolling soon for contractual reasons. If the Hobbit is a huge money maker and the coffers start to fill Bond will get made quicker, however before then smaller budget films will get the dosh. Two big budget films with as many small ones as make sense and so far looks like a sound strategy.

[The Sweeney]

Bond will not go under, a deal will be done with some group, but Broccoli's arrogant fees for product placement will be a thing of the past. No person buys a car, a watch, a boat, etc., because of Cr-egg.

Not necessarily. Some Bond fans seem to be made out of money, and there are a few who would buy something because Craig was associated with it.

I'm one of the sad few who gets suckered in to buying merchandise from Bond films, regardless of who is playing Bond......

And BJ...I always get a smile on my face and a chuckle whenever I read you've written `Cr-egg'......

Thanks for cheering me up today....

[The Sweeney]

The Spyglass deal would be ratified somewhere in the beginning of September, the full package ready to submit before or around September 15.I am surprised more hasn't leaked out. Usually we hear more when a deal it in the final stages of being hammered out.
MGM has to get moving on the Hobbit soon or face the penalties.

So Mazer, do you think we'll get an official announcement some time in September?

[Mazer Rackham]

That's my guess (say around the first for proposal to be approved, then around the 15th for court filings). Everyone I've talked to is on the same page. If it were not for The Hobbit they could keep punting. Even when it's official it will still take some time to workout. Whatever happens it wont be fast but it at least it will be progress.

[Omega]

IMDB has updated Bond 23 to once again include Craig for a long while it was blank. Suppose this announcement is why.

[doubleoLisa]

Maybe when Bond is brought back it will be a retro movie set in the sixties since retro has become a trendy techinque.

[Kristatos]

Maybe when Bond is brought back it will be a retro movie set in the sixties since retro has become a trendy techinque.

Fans (and Quentin Tarantino) are always calling for a period piece Bond, but I doubt it'll ever happen. It'd just be confusing for Joe Q Multiplex.