MGM watch: 007’s studio seen getting stronger

Metro-Goldwyn-Mayer, which controls half of the James Bond franchise, is becoming stronger financially six years after exiting bankruptcy, author and former studio executive Peter Bart writes in a commentary for the Deadline: Hollywood website.

Bart’s story paints MGM as “one of the most consistently profitable” studios.

“MGM produces 5-7 movies a year, has 14 TV shows on the air, has earned a profit of $124 million in its first quarter, and is positioned to make some intriguing acquisitions in the coming year,” Bart wrote.

How could this shake out for future James Bond films?

Executives at rival studios think MGM might re-enter the distribution business next year with the next James Bond film, but this is still speculation. A merger with another major — Paramount or Lionsgate are prospects — is now feasible given MGM’s weight in TV as well as film. Then there’s always the mega-plan: the Amazons and Apples are always hovering. At this point, the possibilities exist, but the decisions haven’t been made. (emphasis added)

MGM hasn’t released a Bond film since 2002’s Die Another Day. The last four were actually released by Sony Pictures. Sony was part of a group that had control of MGM for a few years.

After MGM’s 2010 bankruptcy, Sony cut a deal where it co-financed 007 films with with MGM but only got 25 percent of the profits. Sony’s contract with MGM for Bond films expired with 2015’s SPECTRE.

Bart, 83, was the editor in chief of Variety from 1989 to 2009. But Bart also worked as an executive at studios, including MGM and Paramount. He’s also written books about the film industry, including 1990’s Fade Out: The Calamitous Final Days of MGM.

Bart doesn’t venture too far into 007’s film future but says the gentleman spy will continue to be part of it.

A key resource for MGM, of course, continues to be the Bond franchise, which is in a moment of flux. Daniel Craig may or may not return, say Bond-watchers, and Sam Mendes has withdrawn as its director. And while Barber is tempted to re-establish MGM’s distribution arm to handle the Bond film, he apparently also believes MGM resources may be more profitably focused on acquisitions or other initiatives.

MGM and Eon Productions have had an uneasy relationship since 1981 when MGM acquired United Artists, the studio that originally released Bond films. Before that, UA acquired Harry Saltzman’s stake in the Bond franchise when the co-founder of Eon was in financial trouble in the mid-1970s.

The main question Bart leaves unanswered is whether Gary Barber, who has been either co-CEO or sole CEO since MGM exited bankruptcy, has managed to change that.

Barber said in March he’s not in a hurry to negotiate a new 007 film releasing deal with other studios. The MGM chief declined to comment to Bart.

To read the entire Bart commentary, CLICK HERE.