Metro-Goldwyn-Mayer
Metro-Goldwyn-Mayer Studios Inc. is an American film and television production and distribution company headquartered in Culver City, California. Metro-Goldwyn-Mayer was founded on April 17, 1924, and has been owned by the Amazon MGM Studios subsidiary of Amazon since 2022.
MGM was formed by Marcus Loew by combining Metro Pictures, Goldwyn Pictures, and Louis B. Mayer Pictures into one company. It hired a number of well-known actors as contract players—its slogan was "more stars than there are in heaven"—and soon became Hollywood's most prestigious filmmaking company, producing popular musical films and winning many Academy Awards. MGM also owned film studios, movie lots, movie theaters, and technical production facilities. Its most prosperous era, from 1926 to 1959, was bracketed by two productions of Ben Hur. It divested itself of the Loews movie theater chain and, in 1956, expanded into television production.
In 1969, businessman and investor Kirk Kerkorian bought 40% of MGM and dramatically changed the operation and direction of the studio. He hired new management, reduced the studio's output to about five films per year, and diversified its products, creating MGM Resorts International as a Las Vegas–based hotel and casino company. In 1980, Kerkorian split MGM into two separate companies to focus on its hotels and resorts. The studio was rebranded as Metro-Goldwyn-Mayer Film Co., and in 1981, acquired United Artists. In 1986, Kerkorian sold MGM/UA to Ted Turner, who retained the rights to the MGM film library, sold the studio lot in Culver City to Lorimar, and sold the remnants of MGM back to Kerkorian a few months later. After Kerkorian sold and reacquired the company again in the 1990s, he expanded MGM by purchasing Orion Pictures and the Samuel Goldwyn Company, including both of their film libraries. Finally in 2005, Kerkorian sold MGM to a consortium that included Sony Pictures.
MGM was listed on the New York Stock Exchange until 1986 when it was sold to Turner. The company had its third IPO on the same exchange in 1997.
In 2010, MGM filed for Chapter 11 bankruptcy protection and reorganization. After reorganization, it emerged from bankruptcy later that year under its creditors' ownership. Two former executives at Spyglass Entertainment, Gary Barber and Roger Birnbaum, became co-chairmen and co-CEOs of MGM's new holding company. After Barber's departure in 2018, the studio sought to be acquired by another company to pay its creditors. In May 2021, Amazon acquired MGM for ; the deal closed in March 2022. In October 2023, Amazon Studios absorbed MGM Holdings and rebranded itself as Amazon MGM Studios. As of 2023, its most commercially successful film franchises include James Bond and Rocky, while its most recent television productions include Fargo and The Handmaid's Tale.
As a subsidiary of Amazon MGM Studios, MGM is a member of the Motion Picture Association ; it was a founding member before leaving in the 2005 Sony acquisition.
Overview
MGM was the last studio to convert to sound pictures—nonetheless, from the end of the silent film era through the late 1950s, it was the dominant motion picture studio in Hollywood. It was slow to respond to the changing legal, economic, and demographic nature of the motion picture industry during the 1950s and 1960s; and although its films often did well at the box office, it lost significant amounts of money throughout the 1960s. In 1966, MGM was sold to Canadian investor Edgar Bronfman Sr., whose son Edgar Jr. would later buy Universal Studios. Three years later, an increasingly unprofitable MGM was bought by Kirk Kerkorian, who slashed staff and production costs, forced the studio to produce low-quality, low-budget fare, and then ceased theatrical distribution in 1973. The studio continued to produce five to six films a year that were distributed through other studios, usually United Artists. Kerkorian did, however, commit to increased production and an expanded film library when he bought UA in 1981.MGM ramped up internal production, and kept production going at UA, which was continuing to thrive, particularly with the lucrative James Bond film franchise. It also incurred significant amounts of debt to increase production. The studio took on additional debt as a series of owners took charge in the 1980s and early 1990s. In 1986, Ted Turner bought MGM, but a few months later, sold the company back to Kerkorian to recoup massive debt, while keeping the library assets for himself. The series of deals left MGM even more heavily in debt. MGM was bought by Pathé Communications in 1990, but Parretti lost control of Pathé and defaulted on the loans used to purchase the studio. The French banking conglomerate Crédit Lyonnais, the studio's major creditor, then took control of MGM. Even more deeply in debt, MGM was purchased by a joint venture between Kerkorian, producer Frank Mancuso, and Australia's Seven Network in 1996.
The debt load from these and subsequent business deals negatively affected MGM's ability to survive as an independent motion picture studio. After a bidding war which included Time Warner and General Electric, MGM was acquired on September 23, 2004, by a partnership consisting of Sony Corporation of America, Comcast, Texas Pacific Group, Providence Equity Partners, and other investors.
After its bankruptcy in 2010, MGM reorganized, with its creditors' $4 billion debt transferred to ownership. MGM's creditors controlled MGM through MGM Holdings, a private company. New management of its film and television production divisions was installed.
History
Founding and early years
In 1924, movie theater magnate Marcus Loew had a problem. He had bought Metro Pictures Corporation in 1919 for $3 million, to provide a steady supply of films for his large Loew's Theatres chain. However, he found that his new property only provided a lackluster assortment of films. Seeking to solve this problem, Loew purchased Goldwyn Pictures in 1924 for $5 million to improve the quality of the theaters' products. Loew acquired the Goldwyn studio - including its Culver City studio lot, its Leo the Lion "Ars Gratia Artis" slogan, and its contracted stars and projects - after negotiations with its president, Frank Joseph Godsol, as Samuel Goldwyn had lost control of the company he had renamed himself after in 1922. Goldwyn reluctantly sold his remaining interest in Goldwyn Pictures to Loew for $1 million.However, these purchases created a need for someone to oversee his new Hollywood operations, since longtime assistant Nicholas Schenck was needed in New York headquarters to oversee the 150 theaters. A solution came in the person of Louis B. Mayer, head of Louis B. Mayer Pictures. Loew bought the Mayer studio for $75,000. Loews Incorporated completed the merger of the Loews theater chain and the three studios on April 17, 1924, celebrated with a fete on April 26, 1924. Mayer became head of the renamed Metro-Goldwyn-Mayer, with 24-year-old Irving Thalberg as head of production. Final approval over budgets and contracts rested with New York City-based Loews Inc., while production decisions rested with the production headquarters in Culver City.
MGM produced more than 100 feature films in its first two years. In 1925, MGM released the extravagant and successful Ben-Hur, taking a $4.7 million profit that year, its first full year. Also in 1925, MGM, Paramount Pictures and UFA formed a joint German distributor, Parufamet.
Marcus Loew died in 1927, and control of Loew's passed to Nicholas Schenck. In 1929, William Fox of Fox Film Corporation bought the Loew family's holdings with Schenck's assent. Mayer and Thalberg disagreed with the decision. Mayer was active in the California Republican Party and used his political connections to persuade the Justice Department to delay final approval of the deal on antitrust grounds. During this time, in the summer of 1929, Fox was badly hurt in an automobile accident. By the time he recovered, the stock market crash in the fall of 1929 had nearly wiped Fox out and ended any chance of the Loew's merger going through. Schenck and Mayer had never gotten along, and the abortive Fox merger increased the animosity between the two men.
1920s
From the outset, MGM tapped into the audience's need for glamor and sophistication. Having inherited few big names from their predecessor companies, Mayer and Thalberg began at once to create and publicize a host of new stars, among them Joan Crawford, Greta Garbo, John Gilbert, William Haines, and Norma Shearer. Established names such as Wallace Beery, Lon Chaney, Buster Keaton, and William Powell were hired from other studios. They also hired top directors such as Clarence Brown, Tod Browning, Victor Seastrom, King Vidor and Erich von Stroheim. The arrival of talking pictures in 1928–29 gave opportunities to other new stars, many of whom would carry MGM through the 1930s: Clark Gable, Nelson Eddy, Jean Harlow, Myrna Loy, Jeanette MacDonald, Robert Montgomery, Robert Taylor, and Spencer Tracy among them.MGM was one of the first studios to experiment with filming in Technicolor. Using the two-color Technicolor process then available, MGM filmed portions of The Uninvited Guest, The Big Parade, and Ben-Hur, among others, in the process. MGM released The Viking, the first complete Technicolor feature with a synchronized score and sound effects, but no spoken dialogue.
With the arrival of "talkies", MGM moved slowly and reluctantly into the sound era, releasing features such as White Shadows in the South Seas with music and sound effects, and Alias Jimmy Valentine with limited dialogue sequences. Their first full-fledged talkie, the musical The Broadway Melody, however, was both a box-office success and won the Academy Award as Best Picture of the Year.