MGM share prices have plummeted today following the news that its 1.3 billion pound debt is close to forcing it into bankruptcy. In a desperate bid to keep it afloat, buyers are being sought - this could still save hundreds of industry jobs. Canadian company Lionsgate has expressed an interest and Access Industries is seeking to add the ailing studio to its growing entertainment empire. It is expected that Sony and Time Warner will also make bids.
MGM is one of the oldest surviving film studios, having opened its doors in 1924. Its greatest successes came during the golden age of Hollywood when it was home to stars like Joan Crawford and Greta Garbo. Over the years it has released numerous films now regarded as classics, from Gone With The Wind to Doctor Zhivago. It is also the current home of the James Bond films.
If MGM collapses, several major projects could be in trouble, including Guillermo Del Toro's Lord Of The Rings prequel The Hobbit and Darren Aronofsky's remake of Robocop. The studio's next release is scheduled to be Hot Tub Time Machine, the story of two men who get the chance to live the last twenty five years of their lives over again, fixing their mistakes. MGM may be wishing it could do the same thing.
