Sony in talks to buy MGM

Yesterday, rumors were thrown around Wall St. about Sony who are in negotiations to buy MGM. If the deal goes through, Sony will add MGM's 4200-strong movie library to its 4000 movies and own almost half of the colored motion pictures available today. In today's industry, it is unconceivable that a single man, Kirk Kerkorian holds a 75% stake in MGM. The deal is romored to be worth $5 billion (yes, with a B).

Hock,

The thing with MGM is that its library is impressive, but because one man basically owns it (and keeps buying and selling it during a span of three decades), the studio has been unable to maintain a steady creative vision when compared to the other majors, which have the benefit of being backed by huge conglomerates who don't buy/sell as if on crack.

Numbers are deceiving, though. Yes, MGM owns that many titles, but most of them are bad, bad, bad (then again, most of all movies are bad, bad, bad, lol).

Eddie

:o Since MGM holds the distribution rights to The Hobbit,
does anyone know if there are any Tolkien fans
in the inner circle of Sony? 8)

.8)
A few months ago, I heard that Sony/MGM was falling through, and Time Warner might be interested.

well...

PHILADELPHIA (Reuters) - Metro-Goldwyn-Mayer Inc. has restricted its employees' ability to trade shares in the company, and could announce a deal to be acquired for up to $5 billion as soon as next week, according to sources close to the company. Time Warner, [owning New Line] which had three big hits with the "Lord of the Rings" movies, could be close to acquiring MGM, which has movie rights to "The Hobbit," the fourth story of the series

I know this may make me sound like I have a "one tracked mind", however does anyone see this buy out by Sony a possible "push" for HDDVD domination in the upcoming competition? After all if Sony holds the rights to so many movie titles, then they add MGM's library (and rights), wouldn't that be a brilliant marketing scheme when they finally bring out "Blu-ray"? Sony stands to lose A LOT of money if HDDVD wins out over Blu-ray. He whom controls the movies, controlls the HDDVD market.

Just a thought.

- Josh

mra,

Actually, that's the opposite of what we're talking about. What you described would be a combination of ascending technologies. For example, even though we've got MP3/CD players for cars now that are obviously a technological step forward, you can still order a brand new car today with the "old technology" CD/cassette deck combo. This isn't what we're talking about. FM succeded AM, 8 track succeded LP's, cassette succeded 8 track, and CD succeded cassettes. We're talking about "competeing" technologies not being found in a "combo". Thus my example of "Beta" and "VHS" not being found in one combo... they were competitors, not successors.

- Josh ;)

Or how about a combo: cassette/8-track/LP/AM/FM m-a-n-y years ago.
I had one.:)

Maybe a better comparisson would be this. It would be like seeing "Beta" and "VHS" in one machine in the early 80's. ;)

Chances are u might see the combo- Blu Ray and HDDVD. Pioneer came out with the DVD player which can read about SACD (Sony format) and DVD-Audio. You will always have third party companies coming out with product like this.

--Ranjan

Chrtrptnt,

Every time I think I've got a handle on which corporation will win out, something changes. I'm worried too, mainly because of the potential cost of movies if Sony wins. However, as concerned as we both are, unless either of us plan on buying a player in the first year they debut, we won't have to worry about it for a long time. If you think in terms of time frame, a year (or a little more) from March of '05, is when prices on "HDDVD" players "should" start to come down. At which point "Blue-ray" players will just be coming out. Which means Blue-ray will be the "more" expensive toy on the market. Now begins the battle. "Whom" will have more movie titles in "high definition". As I previously mentioned, if the MGM deal goes through for Sony, it could be Sony that has more titles. But if the deal bombs, it could be HDDVD. Either way, being that the "battle" won't begin until Sony brings their player out (a year after HDDVD's debut) the battle between the two might go on for a year or two after that before one or the other side relents. If you're keeping score at this point, that means it could be 2008 before one or the other side gives up, and we have a successor. I think we have some time to decide.

I don't think you'll ever see a "Blue-ray" & "HDDVD" combo. It would be like seeing Coke & Pepsi in the same soda machine. ;)

- Josh