Metro–Goldwyn–Mayer

Metro-Goldwyn-Mayer Studios Inc., also known as Metro-Goldwyn-Mayer Pictures and abbreviated as MGM, is an American film, television production, distribution and media company owned by Amazon through MGM Holdings, founded on April 17, 1924 and based in Beverly Hills, California.

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 film studio, 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''. After that, it divested itself of the Loews movie theater chain, and, in the 1960s, diversified into television production.

In 1969, Kirk Kerkorian bought 40% of MGM and dramatically changed the company. He hired new management, reduced the studio's output to about five films per year, and diversified its products, creating MGM Resorts International and a Las Vegas-based hotel and casino company (which it later divested in the 1980s). In 1980, the studio acquired United Artists. Kerkorian sold the entire company to Ted Turner in 1986, who kept the rights to the MGM library in Turner Entertainment, sold the studio lot in Culver City to Lorimar, and sold the remnants of MGM back to Kerkorian that year. 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 2004, Kerkorian sold the company to a consortium that included Sony Pictures.

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 2020, the studio sought to be acquired by another company to pay its creditors.

In May 2021, Amazon acquired the studio for $8.45 billion; the deal closed in March 2022.

As of 2022, MGM is still producing and distributing feature films and television series. Its major film productions include the ''Rocky'' and ''James Bond'' franchises, and among its recent television productions is the series ''The Handmaid's Tale''.

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 United Artists in 1981.

MGM ramped up internal production, as well as keeping production going at UA, which included 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 (led by Italian publishing magnate Giancarlo Parretti) 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 a separate 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.

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.

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 theatres' products. 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. Approached by Louis B. Mayer, Loew addressed the situation by buying Louis B. Mayer Pictures for $75,000. Loews Incorporated completed the merger of the Loews theater chain, Metro's distribution network, Goldwyn Pictures studio and Louis B. Mayer Productions 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 (Mayer reportedly referred to his boss as "Mr. Skunk"), and the abortive Fox merger increased the animosity between the two men.

1920s and 1930s

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 Greta Garbo, John Gilbert, William Haines, Joan Crawford, and Norma Shearer (who followed Thalberg from Universal). Established names like Lon Chaney, William Powell, Buster Keaton, and Wallace Beery were hired from other studios. They also hired top directors such as King Vidor, Clarence Brown, Erich von Stroheim, Tod Browning, and Victor Seastrom. 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, Jean Harlow, Robert Montgomery, Spencer Tracy, Myrna Loy, Jeanette MacDonald, and Nelson Eddy 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'' (1924), '' The Big Parade'' (1925), and ''Ben–Hur'' (1925), among others, in the process. MGM released '' The Viking'' (1928), 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 like '' White Shadows in the South Seas'' (1928) with music and sound effects, and '' Alias Jimmy Valentine'' (1928) with limited dialogue sequences. Their first full-fledged talkie, the musical ''The Broadway Melody'' (1929), however, was both a box-office success and won the Academy Award as Best Picture of the Year.

MGM, was the last major studio to convert to sound. Its 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); their first complete feature in the process 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.

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 and moved production to MGM studios, continuing production of the successful series of children's comedies until 1944. 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. In 1935, MGM acquired a controlling interest in the capital stock of Leo Feist, Inc., the last of the "Big Three". During the first musical craze of 1928–1930, a custom MGM label was created by Columbia using tunes from MGM productions that were recorded by Columbia. These records were sold only at Loew's theaters. (Columbia also created a label called Publix for Paramount music and sold only at Paramount Theaters.)

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, as well. Despite Harlow's gain, Garbo was arguably the biggest star for 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).

Mayer and Irving Thalberg's association began warmly, but eventually relations between the two became strained; Thalberg preferred literary works and expensive costume pictures over the lower budget, family-oriented crowd-pleasers Mayer wanted. Thalberg, always physically frail, was removed as head of production in 1932. Mayer encouraged other staff producers, among them his son-in-law David O. Selznick, but no one seemed to have the sure touch of Thalberg. As Thalberg's health deteriorated in 1936, Mayer could now serve as his temporary replacement. Rumors had begun circulating for some time that Thalberg was leaving MGM to set up his own independent company; his premature death at age 37 in September 1936 cost MGM dearly.

After Thalberg's untimely death, Mayer became head of production, as well as studio chief, becoming the first million-dollar executive in American history. The company remained profitable, and an increase in MGM's "series" pictures (''Andy Hardy'' starring Mickey Rooney, ''Maisie'' starring Ann Sothern, '' The Thin Man'' starring William Powell and Myrna Loy, and '' Dr. Kildare/ Dr. Gillespie'' with Lew Ayres and Lionel Barrymore) is cited as evidence of Mayer's restored influence. Also playing a huge role was Ida Koverman, Mayer's secretary and ''right hand''.

In 1937, Mayer hired Mervyn LeRoy, a former Warner Bros. ( producer/director as MGM's top producer and Thalberg's replacement. LeRoy convinced Mayer to acquire the film rights to the popular children's book ''The Wonderful Wizard of Oz''; MGM purchased the rights from Samuel Goldwyn for $75,000 in 1938.

MGM's hits in 1939 included '' The Wizard of Oz'', ''Ninotchka'', starring Greta Garbo, '' The Women'', starring Joan Crawford and Norma Shearer and '' Gone with the Wind'', starring Vivien Leigh as Scarlett O'Hara and Clark Gable as Rhett Butler. Although ''Gone With the Wind'' was produced by Selznick International Pictures, the film was distributed by MGM as part of a deal for producer David O. Selznick, Mayer's son-in-law, to obtain the services of Gable as well as financial assistance necessary for Selznick to complete the film. While ''The Wizard of Oz'' was a critical hit, the production costs for the film were so expensive, it took 20 years before it turned a profit.

1940s

Within one year, beginning in 1942, Mayer released his five highest-paid actresses from their studio contracts: Joan Crawford, Greta Garbo, Norma Shearer, Myrna Loy and Jeanette MacDonald. After being labeled "box office poison", Crawford's MGM contract was terminated and she moved to Warner Brothers, where her career took a dramatic upturn. Garbo and Shearer never made another film after leaving the lot. Of the five stars, Loy and MacDonald were the only two whom Mayer later rehired, in 1947 and 1948 respectively; Crawford returned to MGM after Mayer's departure for the musical drama '' Torch Song'' in 1953.

Increasingly, before and during World War II, Mayer came to rely on his "College of Cardinals"—senior producers who controlled the studio's output. This management-by-committee resulted in MGM losing its momentum, developing few new stars, and relying on the safety of sequels and bland material. (Dorothy Parker memorably referred to the studio as "Metro-Goldwyn-Merde".) Production values remained high, and even "B" pictures carried a polish and gloss that made them expensive to mount. After 1940, production was cut from 50 pictures a year to a more manageable 25 features per year. During this period, MGM released several very successful musicals with stars such as Judy Garland, Fred Astaire, Gene Kelly, and Frank Sinatra.

1950s

Audiences began drifting to television in the late 1940s, and MGM and the other studios were finding it increasingly difficult to attract them to theaters. With its high overhead expenses, MGM's profit margins continued to decrease. Word came from Nicholas Schenck in New York to find "a new Thalberg" who could improve quality while paring costs. Mayer thought he had found this savior in Dore Schary, a writer and producer who had found success at running RKO Pictures. Lavish musicals were Schary's focus, with hits like '' Easter Parade'' (1948) and the popular films of Mario Lanza (most famously, '' The Great Caruso'' (1951)) helped keep MGM profitable.

In August 1951, Mayer was fired by MGM's East Coast executives and he was replaced by Schary. Gradually cutting loose expensive contract players (including $6,000-a-week Judy Garland in 1950 and "King of Hollywood" Clark Gable in 1954), saving money by recycling existing movie sets instead of building costly new scenery, and reworking expensive old costumes, Schary managed to keep the studio running much as it had through the early 1940s though his sensibilities for hard-edged, message movies would never bear much fruit. One bright spot was MGM musical pictures, under the aegis of producer Arthur Freed, who was operating what amounted to an independent unit within the studio. MGM produced some well-regarded and profitable musicals that would later be acknowledged as classics, among them '' An American in Paris'' (1951), ''Singin' in the Rain'' (1952), and '' Seven Brides for Seven Brothers'' (1954). However, ''Brigadoon'' (1954), '' Deep in My Heart'' (1954), '' It's Always Fair Weather'' (1955), '' Invitation to the Dance'' (1956) and ''Les Girls'' (1957) were extravagant song and dance flops, and even the now-classic '' The Band Wagon'' (1953) and ''Silk Stockings'' (1957) lost money upon their initial release.

In 1952, as a settlement of the government's restraint-of-trade action, '' United States v. Paramount Pictures, Inc.'' 334 US 131 (1948), Loews, Inc. gave up control of MGM. It would take another five years before the interlocking arrangements were completely undone, by which time both Loews and MGM were losing money. In 1956, Schary was ousted from MGM in another power struggle against the New York-based executives. Cost overruns and the failure of the big-budget epic '' Raintree County'' (1957) prompted the studio to terminate Schary's contract.

Schary's reign at MGM had been marked with few legitimate hits, but his departure (along with the retirement of Schenck in 1955) left a power vacuum that would prove difficult to fill. Initially Joseph Vogel became president and Sol Siegel head of production. In 1957 (by coincidence, the year Mayer died), the studio lost money for the first time in its 34-year history. By 1960, MGM had released the last of its contract players, with many either retiring or moving on to television.

In 1958, MGM released what is generally considered its last great musical, Arthur Freed's Cinemascope color production of '' Gigi'', starring Leslie Caron, Maurice Chevalier, and Louis Jourdan. It was adapted from the novel by Colette, and written by the team of Lerner and Loewe, who also wrote ''My Fair Lady'' and ''Camelot''. ''Gigi'' was a box-office and critical success which won nine Academy Awards, including Best Picture. From it came several hit songs, including "Thank Heaven For Little Girls", "I Remember It Well", the "Waltz at Maxim's", and the Oscar-winning title song. The film was the last MGM musical to win a Best Picture Oscar, an honor that had previously gone to ''The Broadway Melody'' (1929), ''The Great Ziegfeld'' (1936), and '' An American in Paris'' (1951). The last musical film produced by the " Freed Unit" was an adaptation of the Broadway musical '' Bells Are Ringing'' (1960) with Judy Holliday and Dean Martin. However, MGM did release later musical films, including an adaptation of Meredith Willson's '' The Unsinkable Molly Brown'' (1964) with Debbie Reynolds and Harve Presnell.

MGM enters television

MGM's first television program, '' The MGM Parade'', was produced by MGM's trailer department as one of the compilation and promotional shows that imitated Disney's series ''Disneyland'' which was also on ABC. ''Parade'' was canceled by ABC in the 2nd quarter of 1956. MGM took bids for its movie library in 1956 from Lou Chesler and others, but decided on entering the TV market itself. Chesler had offered $50 million for the film library. MGM Television was started with the hiring of Bud Barry to head up the operation in June 1956. MGM Television was to distribute its films to TV (starting with the networks), TV production and purchasing TV stations. TV production was expected to start with the 1957–58 season and was to include half-hour remakes of, or series based on, its pictures. Initial feature film sales focused on selling to the networks.

The year 1957 also marked the end of MGM's animation department, as the studio determined it could generate the same amount of revenue by reissuing older cartoons as it could by producing and releasing new ones. William Hanna and Joseph Barbera, by then the heads of the MGM cartoon studio, took most of their unit and made their own company, Hanna-Barbera Productions, a successful producer of television animation.

In 1956, MGM sold the television rights for ''The Wizard of Oz'' to CBS, which scheduled it to be shown in November of that year. In a landmark event, the film became the first American theatrical fiction film to be shown complete in one evening on prime time television over a major American commercial network. ( Olivier's version of ''Hamlet'' was shown on prime time network TV a month later, but split in half over two weeks, and the 1950 film, '' The Titan: Story of Michelangelo'' was telecast by ABC in 1952, but that was a documentary.) Beginning in 1959, and lasting until 1991, telecasts of ''The Wizard of Oz'' became an annual tradition, drawing huge audiences in homes all over the U.S. and earning additional profits for MGM. The studio was all too happy to see ''Oz'' become, through television, one of the two or three most famous films MGM has ever made, and one of the few films that nearly everybody in the U.S. has seen at least once. Today ''The Wizard of Oz'' is regularly shown on the Turner-owned channels, no longer just once a year.

MGM cartoons

In animation, MGM purchased the rights in 1930 to distribute a series of cartoons that starred a character named Flip the Frog, produced by Ub Iwerks. The first cartoon in this series (entitled ''Fiddlesticks'') was the first sound cartoon to be produced in two-color Technicolor. In 1933, Ub Iwerks canceled the unsuccessful Flip the Frog series and MGM began to distribute its second series of cartoons, starring a character named Willie Whopper, that was also produced by Ub Iwerks.

In 1934, after Iwerks' distribution contract expired, MGM contracted with animation producers/directors Hugh Harman and Rudolph Ising to produce a new series of color cartoons. Harman and Ising came to MGM after breaking ties with Leon Schlesinger and Warner Bros. and brought with them their popular ''Looney Tunes'' character, Bosko. These were known as '' Happy Harmonies'', and in many ways resembled the ''Looney Tunes'' sister series, ''Merrie Melodies''. The ''Happy Harmonies'' regularly ran over budget, and MGM dismissed Harman-Ising in 1937 to start its own animation studio.

After initial struggles with a poorly received series of ''The Captain and the Kids

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