MGM may sell, Bond 25 distribution still up in air, THR says

Metro-Goldwyn-Mayer may be getting ready for a sale while the distribution of Bond 25 — both in the U.S. and internationally — is still unresolved, The Hollywood Reporter said.

The two issues are related, according to the entertainment news outlet.

MGM is holding off on making a Bond 25 distribution deal “because it is using the Bond rights as a carrot for whoever wants to buy the studio,” THR reported, citing “a knowledgable source.”

MGM controls half of the Bond franchise, going back to when it acquired United Artists in 1981. The other half is controlled by Eon Productions and its parent company, Danjaq.

One possible MGM buyer is Sony Corp., THR said. The company’s Sony Pictures (and its Columbia Pictures brand) have distributed the last four Bond films, going back to 2006’s Casino Royale. Under its most recent two-film deal, Sony contributed half of the production costs but only took home 25 percent of the profit.

“Sony is said to be interested in buying the studio and has the cash on hand to pounce,” THR said. The entertainment news outlet says MGM’s price tag may exceed $6 billion, including the 007 rights.

MGM exited bankruptcy in 2010 and had no distribution operation. The studio last year formed a joint venture with Annapurna Pictures to distribute each other’s films in the U.S. However, Bond 25 was not part of the deal. The first MGM film distributed by the joint venture was the recent Death Wish remake.

In November, Deadline: Hollywood reported the MGM-Annapurna joint venture was “thisclose” to securing the U.S. distribution for Bond 25. Since then, various stories have been published assuming it was a done deal. But, as this blog has pointed out, there never was an actual announcement.

The THR story, meanwhile, has an almost throwaway line in the final paragraph that director Danny Boyle’s deal for Bond 25 has been completed.

“One thing is for certain, with the Bond 25 release date looming and director Danny Boyle’s deal done, according to a source, MGM will have to make some kind of move soon,” THR said.

Boyle said last month he will direct the movie if a script being written by his collaborator John Hodge is accepted. MGM declined to comment to THR.

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Bond 25 questions (MGM-Gary Barber edition)

 Metro-Goldwyn-Mayer, James Bond’s home studio, is now leaderless after CEO Gary Barber was apparently forced out. Naturally, the blog is intrigued and has some questions.

Why did Barber get the heave-ho? Outlets including  The Hollywood Reporter (“Barber was blindsided”), Variety (“Barber was blindsided”) and Deadline: Hollywood (“Gary Barber was asked to leave”) made it sound that Barber’s departure was swift and sudden. Considering that MGM in May extended Barber’s contract through 2022, that’s quite understandable.

The reports also cited disagreements between Barber and the board of directors.

What might that mean? Remember, MGM spent much of 2016 negotiating to sell itself to a Chinese buyer, a deal that never materialized, The Wall Street Journal reported in February 2017.

Barber, who took command of MGM in 2010 when it was in bankruptcy, has been gradually trying to expand the company. It has become a good-sized buyer of television shows.

And it took a step toward again becoming a “big boy studio” by striking a deal with Annapurna Pictures to create a joint venture to release each other’s movies. That would be a step toward MGM taking more control of its films. Until now, MGM has cut deals with other studios to distribute MGM films, including the Bond series.

Speculation: It may be the MGM board lost patience and wants to sell the studio.

UPDATE (7 p.m. eastern time): Actually, Deadline: Hollywood, in an update, says it was the other way around from the blog’s speculation — directors didn’t want to sell but Barber wanted to entertain a sale.

How might this affect Bond 25? The next 007 film was specifically exempted from the MGM-Annapurna joint venture. Deadline reported in November that joint venture was “thisclose” to securing U.S. domestic distribution. That was never announced. But if that’s an unannounced reality, there’s still the question of international distribution.

If you’re a studio interested in Bond 25 distribution (in whole or part), who do you talk to? MGM said Monday night there will be an “office of the CEO” that reports to the board until a successor is named.

More broadly, at least for now, Barber’s ouster creates uncertainty for Eon Productions and its parent company, Danjaq. MGM controls half the franchise. That means Agent 007 is tethered to a studio where nothing seems to stay stable for long.

UPDATE II (9:45 p.m., eastern time): The Tracking Board and Variety came out with similar “behind the scenes” stories Tuesday night.

The Tracking Board said a key MGM director saw the company “as a growing empire more than a company on the block as an acquisition target. ” Variety said MGM’s board “has big ambition for growing the once-troubled studio into a major force in film and TV” while deciding Barber “was not the person to lead MGM into the future.”

 

MGM CEO Barber leaving the studio

Gary Barber, former MGM chief

Gary Barber, head of Metro-Goldwyn-Mayer, home studio for the James Bond film franchise, is departing the studio after eight years at the helm, according to numerous news accounts.

Deadline: Hollywood, in an update of its initial story, said late Monday that Barber “was asked to leave” by the company’s board of directors.

The executive was requested to depart “over disagreements on strategy about the future direction of the company,” according to the entertainment news website. “In no uncertain terms, Barber was asked to leave the company, a move that sent has employees reeling.” Barber declined to comment to Deadline about why he was leaving.

The move came after MGM in October extended Barber’s contract through 2022. Barber’s exit apparently was swift. He was still listed as CEO on the company’s website early Tuesday morning.

Barber’s exit potentially could affect Bond 25. MGM hasn’t announced how the movie will be distributed.

MGM formed a joint venture last year with Annapurna Pictures to distribute each other’s movies. Deadline in November reported the joint venture was close to getting the U.S. distributorship for the film. If the deal was completed it was never publicly disclosed. It’s possible another studio may distribute Bond 25 in international markets.

Bond 25 also hasn’t nailed down a director. Danny Boyle said last week he plans to direct the film if a script being written by John Hodge is approved.

Barber took command of MGM when the studio was in bankruptcy in 2010. He steered a slimmed down version of MGM, which has improved its finances since then.

His departure is the latest twist in an often dysfunctional relationship between MGM and Eon Productions and its parent firm, Danjaq. MGM acquired United Artists in 1981, which included half control of the Bond franchise. Relations have at time been tense between the two sides.

Barber’s tenure appeared to be an exception. In his public remarks, Barber frequently referred to Danjaq as partners.

UPDATE (1:05 p.m. eastern time): MGM has removed Barber from the part of its website featuring executives.

007 questions: Media consolidation edition

Image for the official James Bond feed on Twitter

Walt Disney Co. is buying the 20th Century Fox studio and most assets of 21st Century Fox. It’s a new media world.

So, here are a few questions from a 007 perspective.

What happens to MGM? Metro-Goldwyn-Mayer, 007’s home studio is a runt among Hollywood studios. Disney agreeing to buy most of 21st Century Fox is the most prominent example yet of companies seeking to get even bigger in the digital age.

So what does MGM do? According to The Wall Street Journal in a February story, it spent much of 2016 trying to sell to a Chinese buyer. No sale.

MGM and Annapurna Pictures, a Hollywood newcomer, said Oct. 31 they were forming a new joint venture to release each other’s movies. Supposedly, the joint venture had the inside track to release Bond 25 in the United States. But that hasn’t been confirmed.

What happens to 007 home video distribution? Fox has an agreement to distribute James Bond films on home video through June 2020. But accords can change when the ownership of the one of the partners changes. Who knows at this point?

Does somebody make a play to control the entire 007 film franchise? When Disney acquired Marvel and Lucasfilm Ltd. (Star Wars), the bill was in the billions of dollars for each.

But Disney’s deal to acquire most of 21st Century Fox is valued at $52.4 billion. That dwarfs the other deals Disney has negotiated under CEO Robert Iger, 66. Iger has agreed to stick around through 2021 to integrate the Fox assets into Disney.

When companies are throwing around that kind of money, anything is possible.

At the same time, Bond is a complicated animal. Control is divided between Danjaq (parent company of Eon Productions) and MGM. It’s not just opening the checkbook. Taking control of Bond means, probably, separate sets of negotiations.

Still, Bond is one of the last remaining properties not totally under control of a major studio. Will this week’s events prompt somebody to try seizing control of “the gentleman agent with a license to kill”?

MGM-Annapurna may distribute Bond 25 in U.S.

The recently announced joint venture between Metro-Goldwyn-Mayer and Annapurna Pictures may distribute Bond 25 in the United States, Deadline: Hollywood reported.

“This all should be finalized this week, and rumors are flying today,” according to the story by Mike Fleming Jr. and Anita Busch.

MGM and Annapurna announced the joint venture on Oct. 31. At the time, MGM and Annapurna said Bond 25 was not part of the deal.

Deadline said distribution outside the U.S. for Bond 25 hasn’t been decided.

“There are still major decisions to be made on both international distribution and ancillary distribution, the latter of which long had been administered by Fox in a deal that is expiring,” according to the story.

Deadline said Warner Bros. Sony, 20th Century Fox and Universal are still seeking  international distribution for Bond 25.

20th Century Fox currently handles home video releases of Bond films.

MGM controls half of the Bond franchise, with the other half under control of Danjaq, parent company of Eon Productions.

MGM hasn’t had its own distribution operation since exiting bankruptcy in 2010. Sony Pictures has distributed the past four Bond films. Other MGM projects have been released by other studios.

Sony “has been informed that domestic will not go their way” for Bond 25, Deadline said.

Annapurna is a movie production company that got into distribution this year with the drama Detroit.

Welcome to tech ‘disruption,’ 007 fans

Daniel Craig

Technology companies like to disrupt. Newspapers (Google and Facebook have sucked up advertising) and retail (Amazon.com) are among the sectors that have been disrupted.

The cinema world of James Bond may be next.

Apple Inc. and Amazon.com are pursuing James Bond film distribution rights, The Hollywood Reporter said. And, the entertainment news website reported, it’s possible they could go beyond that to possible control of the 007 franchise.

What has gone from a relatively simple question (who will distribute Bond 25?) may instead transform 007 from a movie series into a multi-media endeavor.

The Reporter estimates the franchise is worth anywhere from $2 billion to $5 billion. Apple may be looking to produce content while Amazon already does. Each can afford it.

If either took control, it’s certain that things wouldn’t remain the same. You don’t spend billions of dollars to keep things exactly the same.

Walt Disney Co. acquired Marvel and Lucasfilm Ltd., originators of Star Wars. Disney gives management at both a lot of leeway, but under Disney ownership both are ramping up film production. Marvel now is up to three films a year. Lucasfilm has resumed the regular Star Wars saga, with one-off films in between.

It remains to be seen how this turns out. It’s possible Metro-Goldwyn-Mayer, 007’s home studio, cuts a distribution deal with a traditional studio such as Warner Bros.

Still, keep in mind that MGM mostly is owned by hedge funds. They’re looking to make a profit. Also, does the Broccoli-Wilson family, which controls Danjaq and Eon Productions, have its price? If offers priced in the billions get made, anything is possible.

That’s what they mean by disruption.

Apple, Amazon seek 007 rights, THR Reports

Apple logo

Tech companies Apple Inc. and Amazon.com Inc. are seeking James Bond film rights, THE HOLLYWOOD REPORTER SAID.

They’ve joined traditional film studios, including Warner Bros. and Sony Pictures seeking a deal to distribute Bond 25, according to the entertainment news website. The Bond franchise is controlled by Metro-Goldwyn-Mayer and Danjaq, the parent organization for Eon Productions.

The THR story raises the possibility that Apple and Amazon could expand 007’s reach beyond theatrical films.

Here’s an excerpt:

But the emergence of Apple — which is considered such a viable competitor that Warners is now pressing MGM hard to close a deal — and Amazon shows that the digital giants consider Bond one of the last untapped brands (like a Marvel, Pixar or Lucasfilm) that could act as a game-changer in the content space. Apple’s and Amazon’s inclusion in the chase would indicate that more is on the table than film rights, including the future of the franchise if MGM will sell or license out for the right price.

 

Two former Sony Television executives, Zack Van Amburg and Jamie Erlicht, are leading Apple’s effort, the Reporter said. The move suggests “Apple is interested in cutting a larger rights deal or acquiring full ownership to exploit Bond’s largely unmined TV potential,” according to the story by Tatiana Siegel and Borys Kit.

Studios have scrambled to acquire “intellectual property” that can be the basis of movies, television and other outlets as well creating merchandising opportunities. Walt Disney Co. spent billions to buy Marvel and Lucasfilm Ltd., which originated Star Wars. Disney’s Marvel and Lucasfilm operations now account for much of Disney’s film output.

The Reporter says the Bond franchise could be worth anywhere from $2 billion to $5 billion. Apple and Amazon both have the resources to make that kind of deal.  Each is among the largest companies in the world. Amazon recently spent more than $13 billion to acquire Whole Foods.

In July, Eon announced a U.S. release date of November 2019 for Bond 25. But no distributor has been announced. Sony has released the last four James Bond films. MGM doesn’t have a distribution operation.