It seems that the debt in size of 3.5 billion dollars, was unbearable burden for the “MGM” studio. In the near future equipment of the studio, its library of films, as well as world-famous logo with the roaring lion could go under the hammer in order to cover debts.
Thus, major studio like “Time Warner” can buy the “MGM” library and the studio “United Artists”, which is a part of “MGM Holdings”; another company can buy the logo, but for the “UA” could be prepared a different transaction. There are rumors that one of the long-standing investors, Kirk Kerkorian, who has twice sold and bought “MGM”, will buy the studio logo again.
“MGM’s” debts are up to 3.7 billion dollars, but even if the studio would sell all its property, it will be able to cover a maximum of 1.5 billion.
The library of the studio has about 4000 titles, but, according to some experts, it is not of great interest, because basically it consists mostly an old pictures.
The “MGM” studio has not confirmed an auction and no comments have been given. However, the state of the studio is very grim: this year it released only a remake of the musical “Fame” and in the plans on 2010 were listed three films: the comedy “Hot Tub Time Machine”, “The Zookeeper” and the remake of “Red Dawn”.