'James Bond' Studio, MGM, May Be Sold

'James Bond' Studio, MGM, May Be Sold

MGM's postponing the premiere of "No Time to Die" from November to April 2021 so it could be seen in theaters is expected to deliver a blow to MGM's 2020 earnings before interest, taxes, depreciation and amortization, a measure of cash flows. Apparently, talks of a sale have existed for the past few years, but MGM's price was too high to attract a buyer.

Film studio MGM, the powerhouse behind the James Bond Franchise that Apple reportedly tried to buy in 2018, might be back on the market. But the company hopes their luck will be better this time around, as the market has expanded "beyond Hollywood's traditional players" to global media companies, private-equity investors, blank-check companies, and of course, streamers.

The fresh push is created to lure in global entertainment companies, rival Hollywood studios, buyout funds and "blank cheque" companies, the Wall Street Journal reported. MGM now has ownership on over 4000 titles and 17,000 hours of television programming. It has struck deals to license movies from its library, including "Silence of the Lambs", "Dances with Wolves", "Rain Man" and "The Terminator".

The streaming wars are reaching a new peak in the wake of both WarnerMedia and Disney+ dropping massive announcements. 2021 film slate, including Dune and The Suicide Squad, would debut day-and-date in theaters and HBO Max.

Closely held MGM has tapped investment banks Morgan Stanley MS 5.69% and LionTree LLC and begun a formal sale process, the people said.

As the report notes, MGM has reportedly considered a sale of its studio several times in recent years. At the same time, major companies that see the evolving industry as an opportunity could use MGM's name recognition, library, production bonafides and overall clout to bolster their entrance.

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