Sony out of MGM's back catalog, 20th Century Fox in
05-30-06, 08:19 PM
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Sony out of MGM's back catalog, 20th Century Fox in
From Reuters:
LOS ANGELES (Reuters) - Metro-Goldwyn-Mayer Inc. on Tuesday unveiled new plans to revitalize the movie studio by ending video and DVD distribution pacts with Sony Pictures Entertainment and reestablishing a TV sales division.
MGM said it signed a new worldwide video and DVD distribution pact with 20th Century Fox to consolidate sales efforts under one company.Previously MGM split video and DVD distribution between Fox overseas and Sony in domestic arenas.
For Sony, MGM's decision cuts both ways. Sony's home video business will lose lucrative distribution fees it would have earned for releasing titles from MGM's library of 4,000 movies and 10,000 TV episodes. However, Sony will benefit if MGM makes more money because Sony owns 20 percent of the company.
Sony also secured a deal to extend a film co-production and distribution pact with MGM for one more James Bond film beyond November's release of "Casino Royale." Sony and MGM further agreed to co-produce and distribute a new "Pink Panther" comedy and other yet-to-be determined films.
Finally, MGM will continue supporting Sony's blu-ray DVD technology by releasing DVDs in the new video format.
"We have identified another important opportunity to build out our business by returning our worldwide television sales operations in-house and by consolidating our home entertainment releases with a single distributor," MGM chairman and CEO Harry Sloan said.
Sony has a seat on MGM's board, meaning it had a say in the decision.
The moves follow MGM's March announcement to again begin distributing movies to theaters on its own, and it comes about seven months after Sloan took the reins of the company.
Venerable MGM, known for producing movies like "The Wizard of Oz" and "Gone with the Wind" during Hollywood's Golden Age, was acquired last year by the Sony-led consortium for roughly $3 billion in cash, plus assumed debt.
Private equity investors Texas Pacific Group and Providence Equity Partners together own roughly 50 percent of MGM, Sony and cable TV company Comcast Corp. each own about 20 percent. Other major investors include DLJ Merchant Banking, Quadrangle Group and Sloan.
Sony Pictures is part of Japanese electronics company Sony Corp, and Fox is part of News Corp.
http://news.yahoo.com/s/nm/20060531/...NlYwN5bmNhdA--
LOS ANGELES (Reuters) - Metro-Goldwyn-Mayer Inc. on Tuesday unveiled new plans to revitalize the movie studio by ending video and DVD distribution pacts with Sony Pictures Entertainment and reestablishing a TV sales division.
MGM said it signed a new worldwide video and DVD distribution pact with 20th Century Fox to consolidate sales efforts under one company.Previously MGM split video and DVD distribution between Fox overseas and Sony in domestic arenas.
For Sony, MGM's decision cuts both ways. Sony's home video business will lose lucrative distribution fees it would have earned for releasing titles from MGM's library of 4,000 movies and 10,000 TV episodes. However, Sony will benefit if MGM makes more money because Sony owns 20 percent of the company.
Sony also secured a deal to extend a film co-production and distribution pact with MGM for one more James Bond film beyond November's release of "Casino Royale." Sony and MGM further agreed to co-produce and distribute a new "Pink Panther" comedy and other yet-to-be determined films.
Finally, MGM will continue supporting Sony's blu-ray DVD technology by releasing DVDs in the new video format.
"We have identified another important opportunity to build out our business by returning our worldwide television sales operations in-house and by consolidating our home entertainment releases with a single distributor," MGM chairman and CEO Harry Sloan said.
Sony has a seat on MGM's board, meaning it had a say in the decision.
The moves follow MGM's March announcement to again begin distributing movies to theaters on its own, and it comes about seven months after Sloan took the reins of the company.
Venerable MGM, known for producing movies like "The Wizard of Oz" and "Gone with the Wind" during Hollywood's Golden Age, was acquired last year by the Sony-led consortium for roughly $3 billion in cash, plus assumed debt.
Private equity investors Texas Pacific Group and Providence Equity Partners together own roughly 50 percent of MGM, Sony and cable TV company Comcast Corp. each own about 20 percent. Other major investors include DLJ Merchant Banking, Quadrangle Group and Sloan.
Sony Pictures is part of Japanese electronics company Sony Corp, and Fox is part of News Corp.
http://news.yahoo.com/s/nm/20060531/...NlYwN5bmNhdA--
05-30-06, 09:00 PM
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Hmm, maybe I won't have to suffer with the Richard Burton/John Hurt version of 1984 being out of print for too much longer now...
05-30-06, 09:41 PM
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Originally Posted by Adboy151
Venerable MGM, known for producing movies like "The Wizard of Oz" and "Gone with the Wind" during Hollywood's Golden Age, was acquired last year by the Sony-led consortium for roughly $3 billion in cash, plus assumed debt.
I'm confused. Why would Sony spend all of that $$$$ and then allow Fox to distribute the stuff? They've paid $3 billion for 20% of video profits and a James Bond film? And, is MGM still locked in as an exclusive Blu-ray distributor (as, I assume, Sony would want them)? Or is Fox allowed to call the shots and release MGM properties on HD-DVD, if they wish?
This whole thing doesn't make any sense to me... anyone have any insight?
05-30-06, 09:48 PM
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Originally Posted by bboisvert
And I thought the WHOLE reason for spending the $3b was so Sony would have access to those 4000 movies and 10000 TV episodes for distribution. (At least, that's what all of the press indicated at the time.)
I'm confused. Why would Sony spend all of that $$$$ and then allow Fox to distribute the stuff? They've paid $3 billion for 20% of video profits and a James Bond film? And, is MGM still locked in as an exclusive Blu-ray distributor (as, I assume, Sony would want them)? Or is Fox allowed to call the shots and release MGM properties on HD-DVD, if they wish?
This whole thing doesn't make any sense to me... anyone have any insight?
I'm confused. Why would Sony spend all of that $$$$ and then allow Fox to distribute the stuff? They've paid $3 billion for 20% of video profits and a James Bond film? And, is MGM still locked in as an exclusive Blu-ray distributor (as, I assume, Sony would want them)? Or is Fox allowed to call the shots and release MGM properties on HD-DVD, if they wish?
This whole thing doesn't make any sense to me... anyone have any insight?
05-30-06, 09:52 PM
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Originally Posted by digitalfreaknyc
Fox isn't a part of HD DVD...yet. If they were, I would assume MGM would go along with them, hence my comment.
... I guess my question is why Sony got involved in this and spent so much $$$$ if MGM can essentially just walk away from them. Sony got into a huge bidding war w/Warner over the MGM catalog and paid out a ton of cash, paid off debts, etc... and then a year later, right as Sony is about to launch their new format, MGM walks away??? I guess I don't understand how this whole thing is structured. I assumed that Sony at the very least had a majority vote -- and therefore essentially had control of the company.
05-30-06, 10:00 PM
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Originally Posted by bboisvert
Right, I know that they aren't yet...
... I guess my question is why Sony got involved in this and spent so much $$$$ if MGM can essentially just walk away from them. Sony got into a huge bidding war w/Warner over the MGM catalog and paid out a ton of cash, paid off debts, etc... and then a year later, right as Sony is about to launch their new format, MGM walks away??? I guess I don't understand how this whole thing is structured. I assumed that Sony at the very least had a majority vote -- and therefore essentially had control of the company.
... I guess my question is why Sony got involved in this and spent so much $$$$ if MGM can essentially just walk away from them. Sony got into a huge bidding war w/Warner over the MGM catalog and paid out a ton of cash, paid off debts, etc... and then a year later, right as Sony is about to launch their new format, MGM walks away??? I guess I don't understand how this whole thing is structured. I assumed that Sony at the very least had a majority vote -- and therefore essentially had control of the company.
05-30-06, 10:04 PM
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Originally Posted by bboisvert
And I thought the WHOLE reason for spending the $3b was so Sony would have access to those 4000 movies and 10000 TV episodes for distribution. (At least, that's what all of the press indicated at the time.)
I'm confused. Why would Sony spend all of that $$$$ and then allow Fox to distribute the stuff? They've paid $3 billion for 20% of video profits and a James Bond film? And, is MGM still locked in as an exclusive Blu-ray distributor (as, I assume, Sony would want them)? Or is Fox allowed to call the shots and release MGM properties on HD-DVD, if they wish?
This whole thing doesn't make any sense to me... anyone have any insight?
I'm confused. Why would Sony spend all of that $$$$ and then allow Fox to distribute the stuff? They've paid $3 billion for 20% of video profits and a James Bond film? And, is MGM still locked in as an exclusive Blu-ray distributor (as, I assume, Sony would want them)? Or is Fox allowed to call the shots and release MGM properties on HD-DVD, if they wish?
This whole thing doesn't make any sense to me... anyone have any insight?
Providence Equity Partners - $525 million
Texas Pacific Group - $350 million.
Sony and Comcast Corp - $300 million each.
DLJ Merchant Banking Partners - $125 million
JP Morgan Chase - leading a bank syndicate to provide as much as $4.25 billion more in senior debt financing together with Credit Suisse First Boston.
Last edited by DthRdrX; 05-30-06 at 10:23 PM.
05-30-06, 10:23 PM
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One interesting thing to consider here is that 20th Century Fox has licensed titles to Criterion (Naked Lunch, Kagemusha, and Young Mr. Lincoln are a few examples). I wonder if this deal would allow them to license out MGM titles.
05-31-06, 01:54 AM
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This is great news. Let anyone other than Sony have control of MGMs catalog. Let's see some justice done to some of those titles.
Let the lion roar again.
Let the lion roar again.
05-31-06, 02:28 AM
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I'm just off the blower to Hiratoa Komitsu at Sony Japan Inc. and he's confirmed they are very happy with the new deal because Sony Computer Entertainment has retained the PlayStation3 game transfer rights to the entire back catalogue of Golan-Globus's Cannon Films from 1990 onwards from MGM-JP Morgan. He said that the ground-breaking artistic quality of the back catalogue would be particularly suited to the PS3.
That's a good deal
That's a good deal
05-31-06, 03:55 PM
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Originally posted by Detective Thorn
One interesting thing to consider here is that 20th Century Fox has licensed titles to Criterion (Naked Lunch, Kagemusha, and Young Mr. Lincoln are a few examples). I wonder if this deal would allow them to license out MGM titles.
One interesting thing to consider here is that 20th Century Fox has licensed titles to Criterion (Naked Lunch, Kagemusha, and Young Mr. Lincoln are a few examples). I wonder if this deal would allow them to license out MGM titles.
"When the MGM board, which includes Sony representation, met Tuesday to consider the issue, Fox was touted as a better alternative because it has invested heavily in third-party distribution, making it a potentially more favorable purveyor of MGM fare."
You can read the entire article here.
