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{{Infobox company
{{Infobox company
| name = MGM Holdings Inc.
| name = MGM Holdings Inc.
| logo = [[Image:MGM logo.png|200px]]
| logo = [[Image:MGM logo.png|200px]]
| caption =
| caption =
| type = Private corporation
| type = Private corporation
| traded_as = {{OTC Grey|MGMB}}
| traded_as = {{OTC Grey|MGMB}}
| foundation = February 11, 2005<ref name="MGM-Disclosure-Statement">[http://www.docstoc.com/docs/59433334/MGM-Disclosure-Statement MGM Disclosure Statement] page 424 (Appendix D: Audited Financial Statement. March 2009, page 6), October 7, 2010 {{Dead link|date=November 2014}}</ref><ref name="Eyman">Eyman, Scott. ''Lion of Hollywood: The Life and Legend of Louis B. Mayer.'' New York: Simon and Schuster, 2005. ISBN 0-7432-0481-6</ref>
| foundation = February 11, 2005<ref name="MGM-Disclosure-Statement">[http://www.docstoc.com/docs/59433334/MGM-Disclosure-Statement MGM Disclosure Statement] page 424 (Appendix D: Audited Financial Statement. March 2009, page 6), October 7, 2010 {{Dead link|date=November 2014}}</ref><ref name="Eyman">Eyman, Scott. ''Lion of Hollywood: The Life and Legend of Louis B. Mayer.'' New York: Simon and Schuster, 2005. ISBN 0-7432-0481-6</ref>
| location = [[Beverly Hills, California]], [[United States]]
| location = [[Beverly Hills, California]], [[United States]]
| key_people = [[Gary Barber]] (Chair, CEO)<br>[[Ann Mather]] (lead director)
| key_people = [[Gary Barber]] (Chair, CEO)<br>[[Ann Mather]] (lead director)
| industry = [[Film industry|Film]]
| industry = [[Film industry|Film]]
| products = [[Film|Motion pictures]]<br />[[Television program]]s
| products = [[Film|Motion pictures]]<br />[[Television program]]s
| owner ={{ubl|[[Highland Capital Management|Highland Capital]]|Anchorage Capital Group LLC|[[Third Point Management|Third Point LLC]]|Solus Alternative Asset Management LP<ref>{{cite news|last1=Palmeri|first1=Christopher|title=MGM Film Studio Adopts Takeover Defense, Weighs Options|url=http://www.bloomberg.com/news/2013-09-13/mgm-film-studio-adopts-takeover-defense-weighs-options.html|accessdate=December 29, 2014|work=Boomberg|date=September 13, 2013}}</ref>}}
| owner = {{ubl|[[Highland Capital Management|Highland Capital]]|Anchorage Capital Group LLC|[[Third Point Management|Third Point LLC]]|Solus Alternative Asset Management LP<ref>{{cite news|last1=Palmeri|first1=Christopher|title=MGM Film Studio Adopts Takeover Defense, Weighs Options|url=http://www.bloomberg.com/news/2013-09-13/mgm-film-studio-adopts-takeover-defense-weighs-options.html|accessdate=December 29, 2014|work=Boomberg|date=September 13, 2013}}</ref>}}
| parent =
| parent =
|revenue = {{nowrap|{{Increase}} US$ 1.527 [[1000000000 (number)|billion]] <small>(2013)</small><ref name=2013financials>[http://www.mgm.com/about/pdfview.php?id=8 MGM Holdings Inc. YE 2013 Financial Report], March 26, 2014</ref>}}
| revenue = {{nowrap|{{Increase}} US$ 1.527 [[1000000000 (number)|billion]] <small>(2013)</small><ref name=2013financials>[http://www.mgm.com/about/pdfview.php?id=8 MGM Holdings Inc. YE 2013 Financial Report], March 26, 2014</ref>}}
|operating_income = {{Increase}} US$ 201&nbsp;[[1000000 (number)|million]] <small>(2013)</small><ref name=2013financials/>
| operating_income = {{Increase}} US$ 201&nbsp;[[1000000 (number)|million]] <small>(2013)</small><ref name=2013financials/>
|net_income = {{decrease}} US$ 122&nbsp;million <small>(2013)</small><ref name=2013financials/>
| net_income = {{decrease}} US$ 122&nbsp;million <small>(2013)</small><ref name=2013financials/>
|assets = {{decrease}} US$ 2.546&nbsp;billion <small>(2013)</small><ref name=2013financials />
| assets = {{decrease}} US$ 2.546&nbsp;billion <small>(2013)</small><ref name=2013financials />
| homepage = {{URL|http://www.mgm.com}}
| homepage = {{URL|http://www.mgm.com}}
}}
}}
[[File:MGM Tower.jpg|thumb|[[Constellation Place]], the former headquarters of the company]]
[[File:MGM Tower.jpg|thumb|[[Constellation Place]], the former headquarters of the company]]
'''MGM Holdings Inc.''' is a [[Delaware]]-registered pure [[holding company]] and the parent company of the American media company [[Metro-Goldwyn-Mayer|Metro-Goldwyn-Mayer Inc]]. Through this holding company, MGM's creditors own the studio.<ref name=GT-DEX-2010-CN-MP-X/> Its headquarters are in [[Beverly Hills, California]].<ref>"[http://www.mgm.com/dynamic/pdfs/reports.php?report=Q3 2011 Q3 Financial Report and Supplemental Information (Revised November 11, 2011)]." [[Metro-Goldwyn-Mayer]]. Retrieved on February 18, 2012."</ref>
'''MGM Holdings Inc.''' is a [[Delaware]]-registered pure [[holding company]] and the parent company of the American media company [[Metro-Goldwyn-Mayer|Metro-Goldwyn-Mayer Inc]]. Through this holding company, MGM creditors own the Hollywood studio.<ref name=GT-DEX-2010-CN-MP-X/> Its headquarters are in [[Beverly Hills, California]].<ref>"[http://www.mgm.com/dynamic/pdfs/reports.php?report=Q3 2011 Q3 Financial Report and Supplemental Information (Revised November 11, 2011)]." [[Metro-Goldwyn-Mayer]]. Retrieved on February 18, 2012."</ref>


==History==
==History==
The holding company, MGM Holdings, was formed on February 11, 2005 by a [[Sony]]-led consortium<ref name="MGM-Disclosure-Statement" /> and on April 8, 2005, it acquired MGM in a US$4.8 billion [[leveraged buyout]].{{Citation needed|date=December 2014}} From that period until its emergence from bankruptcy on December 20, 2010, MGM Holdings was owned by [[Providence Equity Partners]] (29%), [[TPG Capital]] (formerly Texas Pacific Group) (21%), [[Sony Corporation of America]] (20%), [[Comcast]] (20%), [[DLJ Merchant Banking Partners]] (7%), and [[Quadrangle Group]] (3%).<ref name="Sony CFS">[http://www.sony.co.jp/SonyInfo/IR/news/qfhh7c00000gpdar-att/CFS.pdf Sony Consolidated Financial Statements for the year ended March 31, 2008]</ref>
The holding company, MGM Holdings, was formed on February 11, 2005 by a [[Sony]]-led consortium<ref name="MGM-Disclosure-Statement" /> and on April 8, 2005, it acquired MGM in a US$4.8 billion [[leveraged buyout]].{{Citation needed|date=December 2014}} From that period until its emergence from bankruptcy on December 20, 2010, MGM Holdings was owned by [[Providence Equity Partners]] (29%), [[TPG Capital]] (formerly Texas Pacific Group) (21%), [[Sony Corporation of America]] (20%), [[Comcast]] (20%), [[DLJ Merchant Banking Partners]] (7%), and [[Quadrangle Group]] (3%).<ref name="Sony CFS">[http://www.sony.co.jp/SonyInfo/IR/news/qfhh7c00000gpdar-att/CFS.pdf Sony Consolidated Financial Statements for the year ended March 31, 2008]</ref> Two of those shareholders own their own major film studio outright; Sony has been the parent company of Columbia TriStar Motion Picture Group since 1989 while Comcast acquired Universal Studios following its merger with NBCUniversal in 2011 after MGM emerged from bankruptcy.{{Citation needed|date=October 2014}}


⚫
Following the emergence from bankruptcy, MGM's secured lenders, which include [[Credit Suisse]] and [[JPMorgan Chase]], jointly own the company. The holding company owns MGM Holdings II Inc., which in turn owns Metro-Goldwyn-Mayer Inc. which then owns the Hollywood studio, Metro-Goldwyn-Mayer Studios Inc.<ref name=GT-DEX-2010-CN-MP-X>{{cite news|title=MGM Files for Chapter 11 Bankruptcy|url=http://www.dailyfinance.com/2010/11/03/mgm-bankruptcy/|accessdate=24 September 2012|date=3 November 2010}}</ref><ref name=MGMII>{{cite web|url=http://www.manta.com/c/mm8cjj5/mgm-holdings-ii-inc |title= MGM Holdings II Inc Info | accessdate=Jan 5, 2012}}</ref><ref>[http://www.courthousenews.com/2010/11/04/MGM%20Holdings.pdf MGM Holdings Voluntary Petition]</ref> In December 2010, MGM named Spyglass partners [[Gary Barber]] and [[Roger Birnbaum]] as the co-Chairs and co-CEOs of the studio; and also appointed [[Ann Mather]], the ex-[[Pixar]] CFO to head MGM's new board of directors.<ref name="Deadline 2010-12-23">[http://www.deadline.com/2010/12/mgm-sets-ex-pixar-cfo-ann-mather-to-head-new-board-of-directors/ MGM Sets Ex-Pixar CFO Ann Mather To Head New Board of Directors], deadline.com</ref> On December 29, 2010, MGM signed a new lease with New York-based group George Comfort & Sons for a 6-story building in the corner of 235–269 N. Beverly, leaving its old headquarters in Century City.<ref name="Deadline 2010-12-29">[http://www.deadline.com/2010/12/official-mgm-moving-into-office-building-once-intended-for-old-william-morris-agency/ Official: MGM Moving Into Office Building Once Intended For William Morris Agency], deadline.com</ref>
===Attempted sale and bankruptcy protection===
After being installed in August 2009 as MGM's new CEO, Stephen Cooper tried to convince MGM's lenders that they should restructure the company's long-term debt in order to allow the studio to continue with its current business model.<ref name="ElicitHalfDozen">[http://www.hollywoodreporter.com/hr/content_display/news/e3ic79966a20ccff392f42654470e25606d DiOrio, Carl. "MGM Sale Expects to Elicit Half-Dozen Bids."]{{Dead link|date=August 2014}} ''The Hollywood Reporter.'' December 7, 2009.</ref> The lenders refused to do so and argued that a sale was the only way to recoup their investment.<ref name="ElicitHalfDozen" /> Cooper agreed to conduct an auction to gauge the level of interest by potential buyers and the value of the assets for sale.<ref name="ElicitHalfDozen" />

On November 12, 2009, MGM announced it was "beginning a process to explore various strategic alternatives including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the company."<ref name="McNaryStrategic">{{cite web|url=http://www.variety.com/article/VR1118011324.html?categoryid=13&cs=1&ref=vertfilm |title=MGM officially on the block |publisher=Variety |date=2009-11-13 |accessdate=2014-08-06}}</ref><ref name="KildayMGMSale">[http://www.hollywoodreporter.com/hr/content_display/news/e3i15e6314384dccfe34363845a72565e59 Kilday, Gregg. "Lenders Extend Deadline for MGM Payments."]{{Dead link|date=August 2014}} ''The Hollywood Reporter.'' November 13, 2009.</ref> Alternatives the company was exploring included the sale of the company or merger with another media firm,<ref name="BarnesSale">http://www.nytimes.com/2009/11/14/business/media/14mgm.html</ref> or an asset auction, which could have included the sale of its 4,000-title film and television library, the company logo, rights to the [[James Bond (film series)|''James Bond'' franchise]], and half-ownership in the three ''[[The Hobbit (film series)|Hobbit]]'' films.<ref name="McNaryStrategic" /> The studio also held out the possibility of gaining a large influx of cash from new investors, although industry analysts believed that alternative was unlikely to happen.<ref name="BarnesSale" /> Some industry analysts said sale of the studio could net $1.5&nbsp;billion to $3&nbsp;billion.<ref name="BarnesSale" /> Others pegged the value at between $2&nbsp;billion to $2.5&nbsp;billion.<ref name="EllerMGMSale">{{cite web|author=Claudia Eller |url=http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/11/so-tell-us-something-we-dont-know-lions-gate-entertainment-vice-chairman-michael-burns-said-at-an-investment-conference-tod.html |title=Lions Gate (and every other media company) says it would buy MGM at right price &#124; Company Town &#124; Los Angeles Times |publisher=Latimesblogs.latimes.com |date=2009-11-12 |accessdate=2014-08-06}}</ref> Potential buyers include Time Warner (which already owns the pre-May 1986 MGM library, has enough cash reserves, and is co-producing the ''Hobbit'' films with MGM), Qualia Capital (a [[private equity fund]] led by Hollywood producer Amir Malin), 20th Century Fox (MGM's home entertainment distributor), and [[Lions Gate Entertainment|Lionsgate]].<ref name="BarnesSale" /><ref name="EllerMGMSale" />

MGM also announced that its creditors agreed to a forbearance on the company's debt payments originally until January 31, 2010,<ref name="McNaryStrategic" /><ref name="KildayMGMSale" /><ref name="BarnesSale" /><ref name="EllerMGMSale" /> but the forbearance was extended to March 31, 2010.<ref>{{cite web|last=Horowitz |first=Lisa |url=http://www.thewrap.com/article/mgm-debt-repayment-deadline-extended-march-31-13682 |title=MGM Debt Repayment Deadline Extended to March 31 |publisher=Thewrap.com |date=2010-01-29 |accessdate=2011-12-15}}</ref>

As of early December 2009, 16 companies had expressed interest in purchasing all or parts of MGM, although only two had actually negotiated a confidentiality agreement that would allow them to examine MGM's financial statements.<ref name="ElicitHalfDozen" /> ''The Hollywood Reporter'' said Warner Bros., 20th Century Fox, and Lionsgate were the leading suitors for the company.<ref name="ElicitHalfDozen" /> Industry observers worried, however, that buyers might only bid on a few of MGM's assets such as the James Bond film franchise or ''The Hobbit'' film which would draw bids of less than $1&nbsp;billion.<ref name="ElicitHalfDozen" /> At least one industry trade publication said creditors would accept offers amounting to $2&nbsp;billion for parts or all of the studio.<ref name="ElicitHalfDozen" /> Even a bid or bids totalling $1.8&nbsp;billion might be accepted, industry observers said, if the buyer agreed to "schmuck insurance" (the right to convert debt to equity, under certain conditions and time-frames).<ref name="ElicitHalfDozen" /> On December 18, press reports said that [[News Corporation]]'s 20th Century Fox film studio had been interested in purchasing MGM, but that News Corp. could not agree to the "restrictive" terms of MGM's nondisclosure agreement,<ref>{{cite web|author=|url=http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/12/news-corp-talks-to-acquire-mgm-reach-impasse.html |title=News Corp. talks to acquire MGM reach impasse &#124; Company Town &#124; Los Angeles Times |publisher=Latimesblogs.latimes.com |date=2009-12-18 |accessdate=2014-07-20}}</ref> which (in part) do not permit potential buyers to speak with MGM's creditors.<ref name="ProspectusOut">{{cite web|last=Das |first=Anupreeta |url=http://www.reuters.com/article/idUSTRE5BH0BJ20091218 |title=MGM sends out prospectus, process going slow: sources |publisher=Reuters |date=2009-12-17 |accessdate=2014-08-06}}</ref> The strict terms of the nondisclosure agreement also led two other potential buyers to refuse to participate, and several others were negotiating over the terms and unable to participate in the process.<ref name="NondisclosureForm">[http://www.hollywoodreporter.com/hr/content_display/news/e3ia0d444a2a4b3e35a1f6c51ef274bb027 ]{{Dead link|date=July 2014}}</ref> The due diligence process was "going slowly" one trade publication reported, with only four of the potential 20 companies participating as of December 18.<ref name="ProspectusOut" /><ref name="NondisclosureForm" />

MGM originally set Friday, January 15, as the deadline to receive bids from the companies interested in acquiring the studio.<ref>{{cite web|url=http://www.worldscreen.com/articles/display/23782 |title=Archives |publisher=WorldScreen.com |date= |accessdate=2014-07-20}}</ref><ref>{{cite web|url=http://www.hollywoodreporter.com/hr/content_display/news/e3iafaeb77d5dd6970260c0528e99e4de87 |title=MGM likely to draw bids as deadline looms |publisher=Hollywoodreporter.com |date= |accessdate=2014-07-20}}</ref><ref>[http://www.rapidtvnews.com/index.php/201001125567/mgm-bids-attracts-hollywood.html ]{{Dead link|date=July 2014}}</ref> However, fewer bids than expected were made.<ref>{{cite web|last=Chakravorty |first=Jui |url=http://www.reuters.com/article/idUSTRE60F04N20100116 |title=MGM bid deadline passes, most bids yet to come |publisher=Reuters |date=2010-01-15 |accessdate=2014-07-20}}</ref> [[Reliance BIG Entertainment|Reliance Entertainment]], which has a joint venture with [[DreamWorks]], joined the bidding on the deadline date.<ref name="Ambani">{{cite web|last=Leahy |first=Joe |url=http://www.ft.com/cms/s/0/68853268-023f-11df-8b56-00144feabdc0.html |title=Ambani's Indian tiger eyes wounded MGM lion |publisher=FT.com |date=2010-01-16 |accessdate=2014-08-06}}</ref> News Corp. reportedly signed a nondisclosure agreement on or about January 15, and was considering a bid.<ref name="Ambani" /> On January 17, the ''New York Times'' reported that bids had been received from Time Warner, Lionsgate, and a few smaller companies but that most of the offers were below the $2&nbsp;billion minimum.<ref name="Grappling">{{cite news|last1=Cieply|first1=Michael|last2=Barnes|first2=Brook|title=Weak Offers for MGM Force Hollywood to Confront Lost Clout|url=http://www.nytimes.com/2010/01/18/business/18studios.html|website=NYTimes.com|accessdate=20 July 2014}}</ref> Some of the bids may have been below $1&nbsp;billion, and nearly all the bids would require MGM to file for bankruptcy first and shed its debt obligations.<ref name="Grappling" /> But the ''[[Financial Times]]'' said sources believed most bids were within the $1.5 to $2&nbsp;billion range.<ref name="Ambani" /> [[Barclays Capital]], a British [[investment banking|investment bank]], was quoted as saying, "We find it unlikely that MGM's creditors would cleanly agree to a sale price materially below $2bn."<ref name="Ambani" /> Time Warner, one media source reported, is seen by industry observers as the leading bidder since it already owns much of the MGM library and has large cash reserves.<ref name="Ambani" /> Qualia Capital, previously thought to be a potential bidder, has suggested that MGM's creditors could avoid forcing the studio into bankruptcy by agreeing to transform $500&nbsp;million of debt into company stock (which would provide MGM with a cash infusion as well as eliminate a substantial portion of debt).<ref name="Grappling" /> By January 23, bids from [[Relativity Media]] (about $1.6&nbsp;billion) and Reliance Entertainment (about $1.8&nbsp;billion) were received as well.<ref name="MGM Bids: Time-Warner, Lionsgate, Reliance, Elliott Associates">{{cite web|author=Deal Central |url=http://www.thewrap.com/ind-column/mgm-bids-time-warner-lionsgate-reliance-elliott-associates-13412 |title=MGM Bids: Time-Warner, Lionsgate, Reliance, Elliott Associates |publisher=Thewrap.com |date=2010-01-22 |accessdate=2011-12-15}}</ref> Six days later, MGM extended its deadline to March 31,<ref>{{cite web|url=http://www.businessweek.com/ap/financialnews/D9DHL48G0.htm|title=MGM studio gets extension on interest payments|work=BusinessWeek |publisher=[[Bloomberg L.P.]]|date= January 29, 2010|accessdate=January 30, 2010}}{{Dead link|date=August 2014}}</ref> and by the next day, News Corporation suggested that the company should offer MGM some cash to keep the company running.<ref>{{cite web|url=http://www.businessweek.com/news/2010-01-30/news-corp-said-to-offer-cash-debt-help-to-keep-mgm-running.html|title=News Corp. Said to Offer Cash, Debt Help to Keep MGM Running|last= White|first= Michael|date= January 30, 2010|accessdate=January 30, 2010|work=BusinessWeek |publisher=[[Bloomberg L.P.]]}}</ref>

A few days later, Time Warner CEO Jeff Bewkes stated that he was interested in MGM, but didn't need to be in any deals, but stated that they would think about it.<ref name="TWMGM">{{cite web|url=http://www.businessweek.com/ap/financialnews/D9DKTO282.htm|title=On the Call: Time Warner CEO doesn't need MGM|work=BusinessWeek |publisher=[[Bloomberg L.P.]]|date= January 3, 2010|accessdate=January 3, 2010}}{{Dead link|date=August 2014}}</ref> At the same time, News Corporation announced that they were kicked out of the bidding after CEO Rupert Murdoch stated that he was being outbid by the other bidders, and later considered buying the now-defunct [[Miramax Films]] from [[Walt Disney Motion Pictures Group|Disney]].<ref name="TWMGM" /> Later, other bidders began bidding on Miramax and Liberty Media's [[Overture Films]] as well, which their respective owners have put up for bidding.<ref>{{cite web|url=http://www.contactmusic.com/news.nsf/story/lionsgate-sets-sights-on-miramax_1131411 |title=Disney – Lionsgate Sets Sights On Miramax – Contactmusic News |publisher=Contactmusic.com |date=2010-02-08 |accessdate=2011-12-15}}</ref><ref>{{cite news| url=http://www.variety.com/article/VR1118015151.html?categoryid=13&cs=1&nid=2562&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+variety%2Fheadlines+%28Variety+-+Latest+News%29 | title=Buyers confront dropping value of film libraries | first=Marc | last=Graser | date=February 12, 2010}}</ref><ref>{{cite news| url=http://www.variety.com/article/VR1118015410.html?categoryid=13&cs=1 | work=Variety | title=Lionsgate registers for security funds | first=Dave | last=McNary | date=February 17, 2010}}</ref>

MGM stated in February 2010 that the studio would likely be sold in the next four months, and that its latest film, ''[[Hot Tub Time Machine]]'', might be one of the last four films to bear the MGM name. However, some stated that the company might continue as a label for new James Bond productions, as well as other movie properties culled from the MGM library.<ref>{{cite news|url=http://www.latimes.com/entertainment/news/la-et-mgm26-2010feb26,0,7597644.story|title=As MGM mulls its future, the show goes on|last=Eller|first=Claudia|work=Los Angeles Times|date= February 26, 2010|accessdate=February 26, 2010}}</ref><ref>{{cite news|author=Bloomberg |url=http://www.nypost.com/p/news/business/new_mgm_bid_deadline_s5HWClKd5p4rDY9DQdTXqI |title=MGM asks potential buyers to submit bids by mid-March – |publisher=Nypost.com |date=2010-02-26 |accessdate=2011-12-15}}</ref> A few weeks later, MGM set March 19 as a deadline to receive bids from companies interested in acquiring the studio, including Time Warner and Lionsgate, although Time Warner was considered the most likely to buy the studio since its Warner Bros. catalog already included all the pre-1986 MGM titles originally acquired by Ted Turner.<ref>{{cite news|last=McNary |first=Dave |url=http://www.variety.com/article/VR1118016203.html?categoryid=13&cs=1 |title=McNary, Dave. "MGM sets deadline for receiving bids" ''Variety.'' March 8, 2010 |publisher=Variety.com |date=2010-03-08 |accessdate=2011-12-15}}</ref><ref>{{cite news|url=http://www.hollywoodreporter.com/hr/content_display/news/e3ib047da6a5b38efff1c1594b2f6039669 |title=DiOrio, Carl. "MGM sets deadline for updated bids" ''The Hollywood Reporter.'' March 8, 2010 |publisher=Hollywoodreporter.com |date=2010-10-13 |accessdate=2011-12-15}}</ref>

MGM filed for Chapter 11 bankruptcy on November 3, 2010<ref>{{cite web|url=http://www.thehollywoodnews.com/2010/11/03/mgm-officially-file-bankruptcy |title=MGM Officially File For Bankruptcy |publisher=The Hollywood News |date=2010-11-03 |accessdate=2014-08-06}}</ref><ref>{{cite web|url=http://www.variety.com/article/VR1118026917?refCatId=13 |title=Judge OKs MGM bankruptcy motions |publisher=Variety |date=2010-11-04 |accessdate=2014-07-20}}</ref> and emerged on December 2 when the Federal Bankruptcy Court approved MGM's reorganization plan, which led to MGM's creditors taking over the company.<ref>{{cite web|title=M.G.M. Wins Approval of Bankruptcy Plan|url=http://dealbook.nytimes.com/2010/12/02/m-g-m-wins-approval-of-bankruptcy-plan|website=NYTimes.com|accessdate=20 July 2014}}</ref><ref>{{cite web|url=http://www.variety.com/article/VR1118028318 |title=MGM reorganization plan OK’d |publisher=Variety |date=2010-12-02 |accessdate=2014-07-20}}</ref><ref>{{cite web|last=Humer |first=Caroline |url=http://www.reuters.com/article/idUSTRE6B14CZ20101202 |title=MGM studio's bankruptcy plan wins judge's approval |publisher=Reuters |date= |accessdate=2014-07-20}}</ref><ref>{{cite web|url=http://www.hollywoodreporter.com/news/judge-approves-mgm-bankruptcy-plan-55597 |title=Judge Approves MGM Bankruptcy Plan |publisher=Hollywoodreporter.com |date= |accessdate=2014-07-20}}</ref> On December 17, 2010, the company laid off about 50 staff members.<ref>{{cite web|url=http://www.hollywoodreporter.com/news/mgm-lays-dozens-staffers-friday-61356 |title=MGM Lays Off Dozens of Staffers Friday |publisher=Hollywoodreporter.com |date=2010-12-17 |accessdate=2014-07-20}}</ref><ref>{{cite web|url=http://www.variety.com/article/VR1118029254 |title=MGM slashes staff ahead of bankruptcy exit |publisher=Variety |date=2010-12-17 |accessdate=2014-07-20}}</ref>

===Creditor group ownership===
⚫
Following the emergence from bankruptcy, MGM's secured lenders, which include [[Credit Suisse]] and [[JPMorgan Chase]], jointly owned MGM Holdings Inc, which in turn owns the Hollywood studio Metro-Goldwyn-Mayer Inc.<ref name=GT-DEX-2010-CN-MP-X>{{cite news|title=MGM Files for Chapter 11 Bankruptcy|url=http://www.dailyfinance.com/2010/11/03/mgm-bankruptcy/|accessdate=24 September 2012|date=3 November 2010}}</ref><ref name=MGMII>{{cite web|url=http://www.manta.com/c/mm8cjj5/mgm-holdings-ii-inc |title= MGM Holdings II Inc Info | accessdate=Jan 5, 2012}}</ref><ref>[http://www.courthousenews.com/2010/11/04/MGM%20Holdings.pdf MGM Holdings Voluntary Petition]</ref> In December 2010, MGM named Spyglass partners [[Gary Barber]] and [[Roger Birnbaum]] as the co-Chairs and co-CEOs of the studio; and also appointed [[Ann Mather]], the ex-[[Pixar]] CFO to head MGM's new board of directors.<ref name="Deadline 2010-12-23">[http://www.deadline.com/2010/12/mgm-sets-ex-pixar-cfo-ann-mather-to-head-new-board-of-directors/ MGM Sets Ex-Pixar CFO Ann Mather To Head New Board of Directors], deadline.com</ref> On December 29, 2010, MGM signed a new lease with New York-based group George Comfort & Sons for a 6-story building in the corner of 235–269 N. Beverly, leaving its old headquarters in Century City.<ref name="Deadline 2010-12-29">[http://www.deadline.com/2010/12/official-mgm-moving-into-office-building-once-intended-for-old-william-morris-agency/ Official: MGM Moving Into Office Building Once Intended For William Morris Agency], deadline.com</ref>


In May 2012, MGM sold its minority non-voting shares of [[LAPTV]] to [[Fox International Channels]] while signing a long term contract for content with LAPTV.<ref name=fic>{{cite web|url=http://www.foxinternationalchannels.com/about/press/fox-international-channels-to-acquire-additional-stake-in-laptv-from-mgm|title=FOX International Channels to Acquire Additional Stake in LAPTV from MGM|date=2012-05-22|publisher=[[Fox International Channels|FOX International Channels]] website}}</ref> On July 31, 2012, MGM announced a deal with [[Carl Icahn]], MGM’s largest shareholder, to acquire his stake in MGM Holdings for US$590 million. The deal allowed MGM to set a market value of US$2.4-US$3 billion for the studio, in case it went public or sold to a strategic investor.<ref>"Los Angeles Business" [http://www.bizjournals.com/losangeles/news/2012/08/01/icahn-sells-mgm-stake-for-590-million.html?ana=yfcpc Icahn sells MGM stake for $590 million] bizjournals.com, Retrieved on August 3, 2012</ref><ref name=GT-DEX-2012-CN-MP-X-01>{{cite news|title=MGM Said to Plan a Buyout of Icahn’s Stake|url=http://dealbook.nytimes.com/2012/07/31/m-g-m-said-to-plan-a-buyout-of-icahns-stake/|accessdate=24 September 2012|date=31 July 2012}}</ref> On July 31, MGM sold [[MGM Networks]], Inc. to [[Chellomedia]], while retaining its US, Canada, UK, Germany and joint ventures in Brazil and Australia, to raise fund to buy out [[Carl Icahn]] and prepare for an [[IPO]]. Chellomedia has licensed the MGM brand and content to continue on the purchased MGM channels.<ref>The Deadline Team (August 1, 2012) [http://www.deadline.com/2012/08/chellomedia-acquires-mgm-networks/ UPDATE: MGM Networks Sale To Chellomedia To Fund BuyBack of Icahn Shares: LAT]. Deadline.com.</ref><ref>Fritz, Ben. (August 01, 2012) [http://articles.latimes.com/2012/aug/01/entertainment/la-et-ct-mgm-channel-sale-20120801 MGM sells overseas channels amid Icahn buyback, IPO preparation]. LA Times.</ref>
In May 2012, MGM sold its minority non-voting shares of [[LAPTV]] to [[Fox International Channels]] while signing a long term contract for content with LAPTV.<ref name=fic>{{cite web|url=http://www.foxinternationalchannels.com/about/press/fox-international-channels-to-acquire-additional-stake-in-laptv-from-mgm|title=FOX International Channels to Acquire Additional Stake in LAPTV from MGM|date=2012-05-22|publisher=[[Fox International Channels|FOX International Channels]] website}}</ref> On July 31, 2012, MGM announced a deal with [[Carl Icahn]], MGM’s largest shareholder, to acquire his stake in MGM Holdings for US$590 million. The deal allowed MGM to set a market value of US$2.4-US$3 billion for the studio, in case it went public or sold to a strategic investor.<ref>"Los Angeles Business" [http://www.bizjournals.com/losangeles/news/2012/08/01/icahn-sells-mgm-stake-for-590-million.html?ana=yfcpc Icahn sells MGM stake for $590 million] bizjournals.com, Retrieved on August 3, 2012</ref><ref name=GT-DEX-2012-CN-MP-X-01>{{cite news|title=MGM Said to Plan a Buyout of Icahn’s Stake|url=http://dealbook.nytimes.com/2012/07/31/m-g-m-said-to-plan-a-buyout-of-icahns-stake/|accessdate=24 September 2012|date=31 July 2012}}</ref> On July 31, MGM sold [[MGM Networks]], Inc. to [[Chellomedia]], while retaining its US, Canada, UK, Germany and joint ventures in Brazil and Australia, to raise fund to buy out [[Carl Icahn]] and prepare for an [[IPO]]. Chellomedia has licensed the MGM brand and content to continue on the purchased MGM channels.<ref>The Deadline Team (August 1, 2012) [http://www.deadline.com/2012/08/chellomedia-acquires-mgm-networks/ UPDATE: MGM Networks Sale To Chellomedia To Fund BuyBack of Icahn Shares: LAT]. Deadline.com.</ref><ref>Fritz, Ben. (August 01, 2012) [http://articles.latimes.com/2012/aug/01/entertainment/la-et-ct-mgm-channel-sale-20120801 MGM sells overseas channels amid Icahn buyback, IPO preparation]. LA Times.</ref>

Revision as of 22:07, 8 January 2015

MGM Holdings Inc.
Company typePrivate corporation
Grey Market: MGMB
IndustryFilm
FoundedFebruary 11, 2005[1][2]
HeadquartersBeverly Hills, California, United States
Key people
Gary Barber (Chair, CEO)
Ann Mather (lead director)
ProductsMotion pictures
Television programs
RevenueIncrease US$ 1.527 billion (2013)[3]
Increase US$ 201 million (2013)[3]
Decrease US$ 122 million (2013)[3]
Total assetsDecrease US$ 2.546 billion (2013)[3]
Owner
Websitewww.mgm.com
Constellation Place, the former headquarters of the company

MGM Holdings Inc. is a Delaware-registered pure holding company and the parent company of the American media company Metro-Goldwyn-Mayer Inc. Through this holding company, MGM creditors own the Hollywood studio.[5] Its headquarters are in Beverly Hills, California.[6]

History

The holding company, MGM Holdings, was formed on February 11, 2005 by a Sony-led consortium[1] and on April 8, 2005, it acquired MGM in a US$4.8 billion leveraged buyout.[citation needed] From that period until its emergence from bankruptcy on December 20, 2010, MGM Holdings was owned by Providence Equity Partners (29%), TPG Capital (formerly Texas Pacific Group) (21%), Sony Corporation of America (20%), Comcast (20%), DLJ Merchant Banking Partners (7%), and Quadrangle Group (3%).[7] Two of those shareholders own their own major film studio outright; Sony has been the parent company of Columbia TriStar Motion Picture Group since 1989 while Comcast acquired Universal Studios following its merger with NBCUniversal in 2011 after MGM emerged from bankruptcy.[citation needed]

Following the emergence from bankruptcy, MGM's secured lenders, which include Credit Suisse and JPMorgan Chase, jointly own the company. The holding company owns MGM Holdings II Inc., which in turn owns Metro-Goldwyn-Mayer Inc. which then owns the Hollywood studio, Metro-Goldwyn-Mayer Studios Inc.[5][8][9] In December 2010, MGM named Spyglass partners Gary Barber and Roger Birnbaum as the co-Chairs and co-CEOs of the studio; and also appointed Ann Mather, the ex-Pixar CFO to head MGM's new board of directors.[10] On December 29, 2010, MGM signed a new lease with New York-based group George Comfort & Sons for a 6-story building in the corner of 235–269 N. Beverly, leaving its old headquarters in Century City.[11]

In May 2012, MGM sold its minority non-voting shares of LAPTV to Fox International Channels while signing a long term contract for content with LAPTV.[12] On July 31, 2012, MGM announced a deal with Carl Icahn, MGM’s largest shareholder, to acquire his stake in MGM Holdings for US$590 million. The deal allowed MGM to set a market value of US$2.4-US$3 billion for the studio, in case it went public or sold to a strategic investor.[13][14] On July 31, MGM sold MGM Networks, Inc. to Chellomedia, while retaining its US, Canada, UK, Germany and joint ventures in Brazil and Australia, to raise fund to buy out Carl Icahn and prepare for an IPO. Chellomedia has licensed the MGM brand and content to continue on the purchased MGM channels.[15][16]

Assets

MGM Holdings directly or indirectly owns and controls about 160 affiliates with the most notable being the following group companies:[17]

Film Production/Distribution and Home Entertainment

Television

Other assets

See also

References

  1. ^ a b MGM Disclosure Statement page 424 (Appendix D: Audited Financial Statement. March 2009, page 6), October 7, 2010 [dead link‍]
  2. ^ Eyman, Scott. Lion of Hollywood: The Life and Legend of Louis B. Mayer. New York: Simon and Schuster, 2005. ISBN 0-7432-0481-6
  3. ^ a b c d MGM Holdings Inc. YE 2013 Financial Report, March 26, 2014
  4. ^ Palmeri, Christopher (September 13, 2013). "MGM Film Studio Adopts Takeover Defense, Weighs Options". Boomberg. Retrieved December 29, 2014.
  5. ^ a b "MGM Files for Chapter 11 Bankruptcy". 3 November 2010. Retrieved 24 September 2012.
  6. ^ "2011 Q3 Financial Report and Supplemental Information (Revised November 11, 2011)." Metro-Goldwyn-Mayer. Retrieved on February 18, 2012."
  7. ^ Sony Consolidated Financial Statements for the year ended March 31, 2008
  8. ^ "MGM Holdings II Inc Info". Retrieved Jan 5, 2012.
  9. ^ MGM Holdings Voluntary Petition
  10. ^ MGM Sets Ex-Pixar CFO Ann Mather To Head New Board of Directors, deadline.com
  11. ^ Official: MGM Moving Into Office Building Once Intended For William Morris Agency, deadline.com
  12. ^ "FOX International Channels to Acquire Additional Stake in LAPTV from MGM". FOX International Channels website. 2012-05-22.
  13. ^ "Los Angeles Business" Icahn sells MGM stake for $590 million bizjournals.com, Retrieved on August 3, 2012
  14. ^ "MGM Said to Plan a Buyout of Icahn's Stake". 31 July 2012. Retrieved 24 September 2012.
  15. ^ The Deadline Team (August 1, 2012) UPDATE: MGM Networks Sale To Chellomedia To Fund BuyBack of Icahn Shares: LAT. Deadline.com.
  16. ^ Fritz, Ben. (August 01, 2012) MGM sells overseas channels amid Icahn buyback, IPO preparation. LA Times.
  17. ^ "Bankruptcy Court Voluntary Petition of MGM Holdings" (PDF). courthousenews.com. Retrieved November 6, 2014.
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