About those MGM sales talks and Bond 25

Image for the official James Bond feed on Twitter

Image for the official James Bond feed on Twitter

The New York Post reported that an unknown Chinese buyer is negotiating to buy Metro-Goldwyn-Mayer, 007’s home studio.

The Post’s sister paper, The Wall Street Journal, followed up by saying MGM had been in talks with a Chinese buyer but the negotiations broke off last year.

How all this applies to Bond 25?

This may explain why MGM never reached a Bond 25 distribution deal

Back in March 2016, MGM said it was in no hurry to negotiate a new Bond movie distribution deal. If the Post and Journal are accurate (that MGM at least *had* talks with a would-be Chinese purchaser), the reason is obvious.

MGM CEO Gary Barber had bigger things on his mind. James Bond may be MGM’s biggest asset, but whether to sell the company or not is bigger (from the perspective of an MGM CEO) than that.

Such talks may have slowed the pace of Bond 25 development

Until there’s a studio that can distribute Bond 25, a new 007 production can’t reach theaters.

Following its 2010 bankruptcy, MGM no longer had a distribution operation. Since then, it has negotiated co-financing and distribution deals with other studios. Maybe that would have changed if a Chinese concern acquired MGM. If the Journal is correct, we’ll never know.

Regardless, MGM negotiating to sell to the Chinese probably would have sent any talks with other U.S.-based studios to distribute Bond 25 to the back burner.

Where do we go from here?

Your guess is as good as this blog’s. However, this is a reminder that Bond is tethered to a weak studio.

MGM bought United Artists in 1981. UA, years earlier, got control of half of the Bond franchise when Harry Saltzman, co-founder of Eon Productions, sold out because of financial troubles.

The MGM soap opera changes in some regards (executives come, executives go) but not in others.  MGM’s glory days are long gone.

 

MGM sale to Chinese not happening, WSJ says

MGM logo

A sale of Metro-Goldwyn-Mayer, 007’s home studio, to a Chinese buyer isn’t happening, The Wall Street Journal reported.

“Talks broke down between MGM and several Chinese companies late last year, an apparent casualty of China’s move to stanch capital outflows that has stalled the country’s shopping spree in Hollywood, according to people familiar with the matter,” the Journal reported.

“An MGM sale would have been among the biggest-ticket and highest-profile such acquisitions, but its failure to materialize is evidence of a twist ending that few in Hollywood expected,” according to the story by three Journal reporters.

Earlier, the New York Post reported that MGM was in talks with a Chinese buyer it didn’t identify. Both the Journal and Post are owned by News Corp., controlled by Rupert Muchoch.

Uncertainty at MGM would have an adverse effect on the 007 film franchise. MGM has been involved with Bond since it acquired United Artists in 1981. UA, in 1975, acquired half of the franchise after Eon Productions co-founder Harry Saltzman sold out because of financial troubles.

MGM emerged from bankruptcy in 2010 as a smaller company, unable to release its own films. MGM cuts deals with other studios to co-finance and release those movies, including the Bond series.

An MGM spokeswoman told the Journal that the studio wasn’t for sale.

Here’s an excerpt from the Journal story about the broader issues facing Hollywood and China:

The economic-policy changes in China come amid mounting protectionist rhetoric in the U.S. from the administration of President Donald Trump.

“We’ve heard from both [private-equity] firms and investment banks that China investment activity around [Hollywood] assets started to wane just prior to the election and is almost nonexistent now,” said Chris Fenton, a trustee of the U.S.-Asia Institute, which organizes congressional delegations to China, and president of DMG Entertainment, a media company headquartered in Beverly Hills and Beijing.

“No China entity wants to be the first to test” the heated rhetoric on the U.S. side and the capital controls on the Chinese side, he added.

The last four Bond films have actually been released by Sony Pictures. Sony’s most recent two-picture 007 deal expired with 2015’s SPECTRE.

 

MGM in negotiations with Chinese buyer, NY Post reports

MGM logo

Metro-Goldwyn-Mayer, home studio of the 007 film franchise, is in sales talks with a Chinese buyer, the New York Post reported.

“The name of the China-based entity involved in the talks, perhaps newly formed to make the deal, could not immediately be learned,” the Post’s Claire Atkinson wrote.

MGM acquired United Artists in 1981, giving it a half stake in the Bond franchise. UA had earlier purchased the holdings of Harry Saltzman, co-founder of Eon Productions and its parent firm, Danjaq.

The studio emerged from bankruptcy in 2010 as a smaller company. It doesn’t have a distribution operation and negotiates deals with other studios to release its films. The last four Bond movies have been released by Sony Pictures.

MGM’s most recent two-picture contract with Sony expired with 2015’s SPECTRE. Studio chief Gary Barber said in March 2016 there was “no rush” to negotiate a new Bond distribution accord with Sony or another studio.

In 2016, MGM said it intended to sell stock to the public in three to five years.

NY Post gossip columnist says Craig will be back

Daniel Craig in a pose worthy of Orson Welles.

Daniel Craig

New York Post gossip columnist Cindy Adams wrote in a short, snarky item that Daniel Craig will be back as James Bond.

“The 411 on 007 is maybe he’s A-1 on BS. Remember him burping ‘I’d rather slash my wrists than play James Bond again?’ Oh, please. Dannyboy’s ready to stir that martini,” Adams wrote for the Post’s Page Six feature.

“Hollywood know-it-alls who know it all categorize this hard-to-catch play as a ploy. He says he hates filming those Bonds, but he knows he loves those Benjamins.”

Who the Hollywood know-it-alls are or how they’re in a position to know it all weren’t specified.

The Post is owned by the Rupert Murdock-controlled News Corp., which owns U.K. tabloids as well as The Times of London and The Wall Street Journal in the U.S.

Bond 25 may film in Croatia, news website says

Image for the official James Bond feed on Twitter

Image for the official James Bond feed on Twitter

Bond 25 may film in Dubrovnik, Croatia, according to a Croatian news website, PortalOko.hr.

The article mostly concerns a press conference concerning how a new version of Robin Hood is to be filmed in Dubronvik.

At the end of the story, according to a translation via Google Translate, Mayor Andro Vlahušić also said, “James Bond is in an advanced stage of negotiations.”

No other details were provided in the story. Dubronvik is on the coast of the Adriatic Sea.

Thanks to Morten Steingrimsen and Matthew Miner who separately pointed out the story.

Bond 25: Why MGM has to get bigger or sell out

Image for the official James Bond feed on Twitter

Image for the official James Bond feed on Twitter

For the James Bond film franchise, Metro-Goldwyn-Mayer is a millstone.

MGM is not big enough to compete with other major studios by itself. Since a 2010 bankruptcy, the home studio of 007 films has needed studio partners to distribute and market Bond movies.

For the past two Bond films, 2012’s Skyfall and 2015’s SPECTRE, MGM negotiated a sweet deal with Sony Pictures. Sony co-financed the movie but only got 25 percent of the profits. Sony ended up in third in line behind MGM and Eon Productions for the 007 spoils.

But good fortune like that only lasts so long.

The Sony deal expired with Skyfall. “There’s no rush,” MGM CEO Gary Barber said of reaching a new Bond distribution deal with Sony or another studio. “We’re evaluating all of our options. We will advise on the deal when we actually make it.”

MGM logo

That was eleven months ago. No hurry, indeed.

In reality, other studios — Sony, Warner Bros. and Paramount among them — have their own issues.

Sony’s parent company wrote down the value of its movie business by almost $1 billion, an indication that things aren’t going well. Warner Bros.’s parent company, Time Warner, is in the midst of an $85 billion acquisition by AT&T. Also, Warner Bros. is struggling with its “extended universe” of movies based on DC Comics characters. Paramount is struggling, period.

Under those circumstances, cutting a deal with MGM to distribute Bond movies might not be the top priority. Even more stable studios, such as 20th Century Fox and Universal, probably want a better deal than Sony got for Skyfall and SPECTRE.

These days, MGM mostly makes television shows while producing a few movies.

Bond, however, remains MGM’s biggest property, going back to when MGM acquired United Artists in 1981. 007, which not that long ago had his first $1 billion box office movie (Skyfall), is a major league property, or at least can be.

For that promise to be fulfilled, however, Bond needs to be at a major league studio.

MGM isn’t that. It hasn’t been for a long time.

To be a big-time studio, MGM needs to be able to release its own movies and be in more control of its destiny.

It’s fine to cut deals with other companies for financing (other studios do). Ultimately, however, Bond’s home studio needs the ability to distribute the movies.

MGM’s Barber wants the company to sell stock to the public in the next three to five years. Maybe it can become big enough to be a real studio again.

But if it can’t, the 007 franchise will suffer. From the selfish standpoint of Bond film fans, a better option might be for MGM to sell to a studio that has big league status.

More turmoil at would-be Bond 25 studio partner Paramount

Paramount logo

Paramount logo

Paramount Pictures, one of the would-be studio partners for Bond 25, may be experiencing some more turmoil.

Bray Grey, the studio chief, is in talks with parent company Viacom about taking a different post at Viacom, the entertainment news website The Wrap reported, citing two people familiar with the situation it didn’t identify. Paramount and Viacom did not comment, The Wrap said.

The Los Angeles Times, which also reported on the talks, said Paramount could announce Grey’s exit as early as next week.

Paramount is among the studios that is supposed to be interested in striking a deal with Metro-Goldwyn-Mayer to release Bond 25. MGM isn’t big enough to release its own films.

Sony Pictures has released the last four 007 films but its most recent two-picture 007 film contract expired with 2015’s SPECTRE. Paramount has done business with MGM, releasing MGM’s 2016 Ben Hur flop.

Paramount has struggled and Viacom was hobbled by a fight where the controlling Redstone family ousted CEO Philippe Dauman last year. The Redstones also control CBS and for a time wanted the companies to consider a merger. Those talks ended in December.

The talks with Grey “come nearly two weeks after” Viacom’s current CEO, Bob Bakish, “made a public mandate for improved financial performance at the studio,” The Wrap said.

Other would-be Bond 25 studio partners also have issues.

Sony Corp., parent company of Sony Pictures, last month wrote down the value of that studio by almost $1 billion. Sony Corp. has said it’s not planning to sell the movie business. Warner Bros.’ parent company, Time Warner, is being acquired by AT&T, but that $85 billion deal is pending regulatory review.