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Posts Tagged ‘Carl Icahn’

A Lion, Hobbits and Bond – oh my!

July 22nd, 2011 No comments

As summer heat scorches most of the U.S., (except, interestingly enough, Hollywood), perhaps it’s time to chill out and get caught up with stories we’ve blogged about in past months. Interestingly, in one way or another, all of today’s stories link to Metro Goldwyn Mayer. Sort of.

 

The Cat Came Back…

Proving a corporate survival rate second to none, MGM emerged from bankruptcy in late 2010 and was placed under the leadership of former Spyglass Entertainment honchos Roger Birnbaum and Gary Barber. Having successfully fended off corporate raider Carl Icahn’s attempt to take over the beleaguered studio via his one-third share in Lionsgate, as well as a semi-serious offer by Time Warner (and even some foreign tire-kicking),  MGM received debtholder approval and the bankruptcy court’s blessing to restructure its obligations, and has re-entered the movie business. Well – sort of.

As a matter of fact, MGM has a movie in the theaters right now – sort of. “Zookeeper” is a MGM film, but it is distributed by Sony under that studio’s Columbia label. MGM bought the script in a 2008 bidding war for $2 million against $3 million, and promptly set Adam Sandler’s production company, Happy Madison (HQ’d at Sony), onto the project, effectively reuniting most of their “Paul Blart: Mall Cop” production team to get “Zookeeper” made. Unfortunately, in the interim, MGM was hit with big money woes, and the film was included in a deal which gave Sony distribution rights to the next two James Bond films as well. The deal with Sony may just get the struggling studio back into regular production, but MGM’s possible future slate looks more like a ‘blast from the past,’ relying heavily on remakes of MGM properties like “Red Dawn,” “RoboCop,” “Mr. Mom” and “Poltergeist.” 

And that’s just the Halfling of it…

Another long-stalled, high-profile MGM project, “The Hobbit,” has finally begun production. Well – sort of. It’s a ‘good news, bad news’ kind of thing for MGM: MGM’s “The Hobbit,” long planned to be a pair of films directed (and co-written) by Guillermo del Toro and produced by ‘Lord of the Rings’ director Peter Jackson, ended up morphing into a giant pair of  Warner Brothers (corporate successor to New Line) 3-D movies, directed by Jackson after MGM’s money woes caused del Toro to move on (after 2 years of work) and MGM to unload its rights, retaining only broadcast TV rights. Peter Jackson has largely reunited his ‘Lord of the Rings’ principals; they support British actor Martin Freeman, who plays Bilbo Baggins. In early press, Jackson points out that these things rarely get easier: the shooting schedule for both ‘Hobbit’ movies is only 12 days less than all 3 of the ‘Lord of the Rings’ films, and the $500 million budget is 40% more than the three earlier films. The first of the two 3-D ‘Hobbit’ films, “The Hobbit: An Unexpected Journey,” is due in theaters in December, 2012. The second film, “The Hobbit: There and Back Again” is set for a year later in December, 2013.

Never say ‘Never Again’…

The other jewel in MGM’s crown (after the hard-won ‘Hobbit’ rights, which involved years of legal wrangling with Saul Zaentz) is James Bond. ‘James Bond 23,’ the as-yet-untitled next chapter in the spy series, was held up due to – what else? – MGM’s financial troubles. With the resolution of MGM’s debt situation, they are free to make the next James Bond movie. Well – sort of.

Due to a deal set up with MGM in 2004, Sony Pictures Entertainment and Sony Pictures Home Entertainment distributed all of MGM’s theatrical feature films and  home video, accordingly, including the rebooted Bond franchise’s highly-successful “Casino Royale” and “Quantum of Solace.” However, MGM exercised an option in 2006 which allowed it to transfer distribution of its product to Twentieth Century Fox Home Entertainment. This left the distribution of the next Bond movie up in the air when MGM ran out of money; now Sony has stepped in and agreed to distribute both ‘Bond 23’ and ‘Bond 24,’ in addition to co-financing both films. This solves several problems: Sony stays in the Bond business, and MGM has a partner well-versed in dealing with EON Productions, the ‘power behind the throne’ of the Bond franchise. Oscar winner Sam Mendes is set to direct, and Daniel Craig will return as James Bond. ‘James Bond 23’ has a release date of November 9, 2012.

It’s Too Darn Hot!

It is hot out there. Why not go into a nice air-conditioned movie theater? This weekend, “Captain America: The First Avenger” is the latest 3-D superhero to grace movie screens, and it should be interesting to see if he battles boy wizards as well as he does Nazis. It takes guts to go up against such tough foes… And if good versus evil isn’t your thing, check out “Friends With Benefits,” which should benefit producer Screen Gems via its clever (2-D, superhero-free) counter-programming… Sort of.

Hollywood Hat Trick

October 25th, 2010 No comments

Scaring Up Big B.O. Horror Bucks

This weekend’s $41.5 million opening by “Paranormal Activity 2” set a record for a horror film opening, besting the 2009 “Friday the 13th” reboot’s $40.6 million opening. “Paranormal Activity 2,” was written by Michael R. Perry, Christopher Landon and Tom Pabst, with a story by Perry based on the first film’s director Oren Peli’s original characters. The new ‘Paranormal’ is directed by Tod Williams, and has already grossed $63.6 million worldwide. With a budget of about $3 million, “Paranormal Activity 2” cost roughly 200 times more than the original film, and would have to make $2.9 billion at the worldwide box office to match the profitability of the first film. So it’s ‘good news, bad news’ for Paramount, which managed expectations for the latest film and utilized a more sophisticated ‘viral’ campaign for it, resulting in the new record opening, but it’s a foregone conclusion that the once-in-a-generation success of “Paranormal Activity” won’t be repeated.

Not In My Back Story…

Another sequel to another surprise hit of last year is making news: “The Hangover 2,” which is filming in Thailand, has nixed a cameo appearance by scandal-racked star Mel Gibson. The sequel to last year’s biggest grossing R-rated comedy, which made $277 million domestically and $420 million worldwide, was scheduled to include Gibson as a reclusive tattoo artist living in Bangkok, but ‘concerns among cast and crew’ have forced director Todd Philips to re-cast Liam Neeson in the role. Cast member Zach Galifianakis recently alluded in a web podcast to a strong “protest” he was voicing about his latest project, but he never mentioned Gibson by name. It’s only the latest in a string of public-relations nightmares for the former box-office champ, following the leaking of recorded phone tirades made against Oksana Grigorieva, his former girlfriend and mother of his year-old son. Gibson’s messy private life has caused his stalwart pal Jodie Foster to put the release of her recent directing effort, “The Beaver,” starring Gibson as a man who expresses himself through a beaver hand puppet, on hold; the film may never get a theatrical release, and instead go ‘straight to video’ as something of an oddity. Insofar as Mike Tyson, a convicted rapist, was offered a cameo in the first film, it seems clear Gibson has not been forgiven by Hollywood for his anti-Semitic, misogynist and racist comments or behavior – nor does it feel like that will happen anytime soon.

Don’t Cats Only Get 9 Lives?

As if the MGM bankruptcy and reorganization could get any messier, another Hollywood film studio, Lions Gate Entertainment, has made an 11th hour bid for the beleaguered Leo the Lion, which was about to face a summary bankruptcy reorganization after a creditor’s vote at the end of this week and be turned over to Spyglass Entertainment principals Gary Barber and Roger Birnbaum to run. Now Lions Gate has offered a package valued at $1.8 billion, including a provision by Carl Icahn, Lions Gate’s largest shareholder, to purchase $963 million of MGM’s $4 billion in debt, making Icahn one of MGM’s biggest creditors (including the $500 million of MGM debt he already owns). As its chief creditor, Icahn would have more say over whether MGM would accept the previous plan to have Barber and Birnbaum run the show, or merge Lions Gate Entertainment with MGM, which Lions Gate chairman Jon Feltheimer says will result in a more vital company with a stronger cash flow. To complicate matters, Icahn acknowledged the presence of another MGM bidder, who has not been identified, although reports surfaced recently of interest by Sahara India Pariwar, an Indian conglomerate. As this bizarre, long march to ‘resolution’ (whatever that might mean) for MGM plays out, it’s clear that Leo the Lion still embraces drama…

Liar, Liar…! ‘Dragon’ on Fire?

April 19th, 2010 No comments

 

 It was another squeaker at the domestic box office this weekend. And another extraordinary round of B.O. estimating, Liar’s Poker style…

According to “Daily Variety,” new release “Kick-Ass” won the Friday ‘frame’ of the weekend, with $7.5 million, while two other films, “Date Night” and weekend opener “Death at a Funeral” were in a virtual Friday tie, with $5.5 million each. It would suggest a tough battle between niche markets to take the weekend. BUT – there’s always the inevitable Hollywood third-act twist (… or IS THERE?)!

Gotta hand it to those distribution dudes… they really know how to wring the suspense out of a weekend. So, as the dragon-smoke clears, and those estimates are faxed in (or emailed in – who knows? With the occasional ‘accuracy’ of some of these numbers, maybe they’re sent by Ouija board…), a new box office champ is crowned – sort of. Last week’s ‘surprise’ repeat #1, “Clash of the Titans,” slipped to the number 5 slot, supplanted by ANOTHER 3-D film, “How to Train Your Dragon,” in its 3rd week of release. As a reminder, ‘Dragon’ opened in the  #1 slot, but quickly fell to #3 in its second week. Its buoyed finish may have something to do with the higher price of 3-D movie tickets – or a particularly bold ‘bluff’ in the Liar’s Poker game of weekend film gross estimating. 

Kick-Ass still

And here’s the rub… ‘Dragon’ beat out “Kick-Ass” to take the #1 weekend slot – but only by $200k. In ESTIMATED dollars. So, I think you know where this is headed… If, as happened last weekend, one studio (or more) got ‘generous’ with their estimated weekend take, the order of #1 and #2 would certainly change… And “Kick-Ass” would open at #1, which is undoubtedly what Lionsgate, its studio, wants. PLUS – and this is one of those ‘only in Hollywood’ scenarios, Lionsgate is mired in a nasty takeover bid by Carl ‘Destroyer of Worlds’ Icahn, and having a number one picture at the box office would be a big boost to the beleaguered mini-major.

As for the rest of the liars at this poker game, “Date Night” and “Death at a Funeral” finished at #3 and #4, with $17.3 and $17 million respectively, but with only $300k between them, it’s anyone’s guess who the ‘real’ #3 and #4 are. Unless they substantially underreported, “Clash of the Titans” should definately have a lock on fifth place, with $15.8 million.