FAREWELL MGM/UA
Via Anne Thompson in the Hollywood Reporter comes the following news:
“The deal, expected to close today, for a consortium of companies (including Sony Corp.) to purchase the MGM assets for some $4.8 billion reminds us that in today’s entertainment universe, it’s all about selling DVDs. Ted Turner was right: It’s the library, stupid. All 4,000 titles.
“…Sony will divvy up the outstanding MGM and UA titles for release through its divisions including Columbia, TriStar, Screen Gems and Sony Pictures Classics. If MGM continues to co-produce films with Sony, it’s mainly to keep the library refreshed, insiders say.
“…New Sony corporate chief Sir Howard Stringer originally wanted to acquire the MGM/UA library outright but was forced by his Sony bosses to seek partners. Now that he heads the company, Stringer might eventually want to buy out the consortium to gain control over MGM/UA, which he could then spin off into a separate public company. MGM and UA already have had many lives.”
.
