Metro-goldwyn-mayer Studios

[Elisabetta Buendia]

MetroGoldwyn-Mayer Studios Inc. (also known as Metro-Goldwyn-Mayer Pictures, commonly shortened to MGM),[1] is an American media company specializing in film and television production and distribution based in Beverly Hills, California.[2] It was founded on April 17, 1924 and has been owned by the Amazon MGM Studios subsidiary of Amazon since 2022.

In 2010, MGM filed for Chapter 11 bankruptcy protection and reorganization.[6][7] 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.[8] After Barber's departure in 2018, the studio sought to be acquired by another company to pay its creditors.[9] In May 2021, Amazon acquired MGM for $8.45 billion;[10] the deal closed in March 2022.[11] In October 2023, Amazon Studios absorbed MGM Holdings and rebranded itself as Amazon MGM Studios.[12] As of 2023, its major film franchises include Rocky and James Bond, while its most recent television productions include Fargo and The Handmaid's Tale.

MGM ramped up internal production, and kept production going at UA, which was continuing to thrive, particularly with the lucrative James Bond film franchise.[18][page needed] It also incurred significant amounts of debt to increase production.[19][page needed] 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.[20] MGM was bought by Path Communications (led by Italian publishing magnate Giancarlo Parretti) in 1990, but Parretti lost control of Path and defaulted on the loans used to purchase the studio.[17][20] The French banking conglomerate Crdit Lyonnais, the studio's major creditor, then took control of MGM.[17][20][21] Even more deeply in debt, MGM was purchased by a joint venture between Kerkorian, producer Frank Mancuso, and Australia's Seven Network in 1996.[22]

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 (the current parent of Turner Broadcasting) and General Electric (the owners of the NBC television network at the time), MGM was acquired on September 23, 2004, by a partnership consisting of Sony Corporation of America, Comcast, Texas Pacific Group (now TPG Capital, L.P.), Providence Equity Partners, and other investors.[23][24]

After its bankruptcy in 2010, MGM reorganized, with its creditors' $4 billion debt transferred to ownership. MGM's creditors control MGM through MGM Holdings, a private company. New management of its film and television production divisions was installed. The creditors have since contracted Morgan Stanley and LionTree Advisors to explore a sale.

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.[25] 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.[25] 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.[25] 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.[26] Mayer became head of the renamed Metro-Goldwyn-Mayer, with 24-year-old Irving Thalberg as head of production.[27] 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.[25]

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.[27] Also in 1925, MGM, Paramount Pictures and UFA formed a joint German distributor, Parufamet.[28]

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 (Mayer reportedly referred to his boss as "Mr. Skunk"),[29][page needed] and the abortive Fox merger increased the animosity between the two men.

MGM was the last major studio to convert to sound. The studio's first all-color, "all-talking" sound feature with dialogue was the musical The Rogue Song in 1930. MGM included a sequence made in Technicolor's superior new three-color process, a musical number in the otherwise black-and-white The Cat and the Fiddle (1934), starring Jeanette MacDonald and Ramon Novarro. The studio then produced a number of three-color short subjects including the musical La Fiesta de Santa Barbara (1935); the first complete Technicolor feature was Sweethearts (1938) with MacDonald and Nelson Eddy, the earlier of the popular singing team's two films in color. From then on, MGM regularly produced several films a year in Technicolor with Northwest Passage (1939) being one of the most notable of this era.

In addition to a large short-subjects program of its own, MGM also distributed the shorts and features produced by Hal Roach Studios, including comedy shorts starring Laurel and Hardy, Our Gang and Charley Chase. The studio's distribution deal with Roach lasted from 1927 to 1938, and MGM benefited in particular from the success of the popular Laurel and Hardy films. In 1938, MGM purchased the rights to the Our Gang series from Roach and production of the successful series moved to the MGM studios, where it continued until 1944.[30] From 1929 to 1931, MGM produced a series of comedy shorts called All Barkie Dogville Comedies, in which trained dogs were dressed up to parody contemporary films and were voiced by actors. One of the shorts, The Dogway Melody (1930), spoofed MGM's hit 1929 musical The Broadway Melody.

MGM entered the music industry by purchasing the "Big Three" starting with Miller Music Publishing Co. in 1934, then Robbins Music Corporation.[31] In 1935, MGM acquired a controlling interest in the capital stock of Leo Feist, Inc., the last of the Big Three.[31] In the 1934 California gubernatorial election Democratic Upton Sinclair ran against Republican Frank Merriam, the latter of whom MGM supported. MGM and other film studios deducted a days pay from each of their employees to raise an anti-Sinclair fund that amounted to $500,000. Irving Thalberg was to lead MGM's anti-Sinclair campaign and the studio recruited Carey Wilson to create a series of anti-Sinclair propaganda films. These films, directed by Felix E. Feist, included fake newsreels of Sinclair supporters who were portrayed as bums and criminals. They were shown in Californian movie theaters, with one episode featuring hired actors as Sinclair supporters speaking with foreign accents.[32]

MGM and other film studios deducted a days pay from their employees to raise an anti-Sinclair fund that amounted to $500,000. Irving Thalberg was to lead MGM's anti-Sinclair campaign and the studio recruited Carey Wilson to create a series of anti-Sinclair propaganda films. These films, directed by Felix E. Feist, included fake newsreels of Sinclair supporters who were portrayed as bums and criminals. They were shown in Californian movie theaters, with one episode featuring hired actors as Sinclair supporters speaking with foreign accents.[33]

During the 1930s, MGM produced approximately 50 pictures a year, though it never met its goal of releasing a new motion picture each and every week (it was only able to release one feature film every nine days). Loew's 153 theaters were mostly located in New York, the Northeast, and Deep South; Gone with the Wind (1939) had its world premiere at Loew's Grand Theatre in Atlanta, Georgia. A fine reputation was gained for lavish productions that were sophisticated and polished to cater to an urban audience. Still, as the Great Depression deepened, MGM began to economize by "recycling" existing sets, costumes, and furnishings from yesteryear projects. This recycling practice never let up once started. In addition, MGM saved money because it was the only one of the big five studios that did not own an off-site movie ranch. Until the mid-1950s, MGM could make a claim its rivals could not: the studio never lost money, although it did produce an occasional disaster such as Parnell (1937), Clark Gable's biggest flop. MGM was the only Hollywood studio that continued to pay dividends during the 1930s.

MGM stars dominated the box office during the 1930s, and the studio was credited for inventing the Hollywood stable-of-stars system as well. MGM contracted with the American Musical Academy of Arts Association to handle all of their press and artist development. The AMAAA's main function was to develop the budding stars and to make them appealing to the public. Stars such as Norma Shearer, Joan Crawford, Greta Garbo, Myrna Loy, and Jeanette MacDonald reigned as the top-paid figures at the studio. Another MGM actress of the era, Jean Harlow, who had previously appeared in the Howard Hughes film Hell's Angels (1930), now had a big break and became a Hollywood sex symbol and one of MGM's most admired stars. Despite Harlow's gain, Garbo arguably remained the biggest star at MGM. Shearer was still a money maker despite her screen appearances becoming scarce, and Crawford continued her box-office popularity until 1937. MGM also received a boost through the man who would become known as "King of Hollywood", Clark Gable. Gable's career took off to new heights after he won an Oscar for the Columbia film It Happened One Night (1934).

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