| Metro-Goldwyn-Mayer | 2500 Broadway Street, Santa Monica, CA 90404-0361 |
| www.mgm.com | (310) 449-3000 Fax: (310) 449-3100 |
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The MGM comeback
Metro-Goldwyn-Mayer (MGM) chairman Frank G. Mancuso, financier Kirk Kerkorian, and Australian broadcaster Seven Network came together to breathe new life into the motion picture leviathan. The triumvirate, led by Kerkorian, bought MGM from French bank Credit Lyonnais in 1996 for $1.3 billion. Kerkorian has long been held responsible for ruining the studio in the 1980s, but since his return, MGM has grown, thanks to the $573 million purchase of film operations from Metromedia International (MIG). The company has yet to resuscitate its production facilities and still occupies an office building in Santa Monica. In addition to MGM Pictures, the company operates United Artists Pictures, Orion Pictures, Goldwyn Entertainment, the MGM 4,100 film library (the largest in the world), and other multimedia operations. In August 1998, Kerkorian bought Australian-owned Seven Networks' stake out for $389 million - his company, Tracinda Corp., currently holds almost 90 percent of MGM stock.
Star-studded history
In 1924, Loew's Inc. bought Samuel Goldwyn's studio (United Artists), Louis B. Mayer's nine-year old production company, and Metro Pictures Corp. to form MGM. The company was consistently profitable, despite the introduction of "talkies" and declining attendance during the Depression. In the 1930s, MGM brought to life A Tale of Two Cities, Gone With the Wind, and The Wizard of Oz. Fred Astaire, Joan Crawford, Clark Gable, Judy Garland, Greta Garbo, Katharine Hepburn, Mickey Rooney, and Spencer Tracy were all under contract with MGM. Trouble set in after World War II, with the advent of television and federal antitrust action which forced movie companies to break from their theater chains. Despite attempts at revitalization with Singin' in the Rain and An American in Paris, finances lagged and Mayer resigned in 1951. In 1969 Kerkorian sold off the companies assets, but the studio's production still slowed to 3 or 4 films a year.
Goldwyn Mayer, Metro-Goldwyn-Mayer
The company's saving grace was United Artists, which struck a gold mine with the James Bond series in the 1960s and 1970s. In 1986 Ted Turner bought MGM/UA (which became MGM again in 1992) and kept the film library for his cable operations, including the jewel in the crown, Gone With the Wind. In 1992 Credit Lyonnais infused money into the flailing company and brought in new management, restabilizing MGM. The company backslid in 1995 with an $18 million investment in Cutthroat Island, the biggest box office bomb in the history of film. In 1997, MGM purchased most of John Kluge's entertainment assets for $573 million, acquiring Orion pictures, Goldwyn Entertainment, Motion Picture Corp. of Americam, and its 2,200-title film and television library, in the transaction. That same year, MGM went public, and was valued at $1.4 billion.
Any takers?
The studio's tepid performance (and shrinking credit line) inspired layoffs of seven percent of the company in 1998. That same year, MGM curtailed its television and studio projects. MGM's newer releases have been a shot in the arm - Tomorrow Never Dies marked continued strength in MGM's James Bond franchise, and The Man in the Iron Mask, despite less than glowing reviews, benefited from the post-Titanic Leonardo DiCaprio mania. In October 1998, Tracinda Corp invested almost $600 million in MGM, indicating the seriousness of financier Kirk Kerkorian's increasing commitment to the company. Since that time, MGM has signed an eight-picture co-financing and distribution agreements with Miramax, as well as selling the rights to MGM's international film and home-video rights to News Corp's Fox Filmed Entertainment.
Recent developments
In 2000, MGM entered into a multi-picture co-financing, co-production deal with Atlas Entertainment. That same year, Kevorkian-owned MGM Grand formally acquired Mirage Resorts in a $4.4 billion deal that created one of the largest hotel-casino companies in the world. In May, MGM signed a $1.4 billion deal with Showtime Networks for up to 270 first-run films, access to 1,200 library titles, and a commitment to produce three new TV series. And in the hope of capitalizing on previous successes, MGM is planning a new Pink Panther movie, Basic Instinct II, and Hannibal, the sequel to Silence of the Lambs. The company also has plans for a cable or satellite TV network.
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MGM's Human Resources has a job hotline (see above), which provides an updated list of openings in the company and general information about submitting your resume. An insider says: "Many people with limited prior work experience sign up with temp agencies and get their foot in the door that way." For corporate positions, the interview process is "relatively casual and friendly" but "rigorous" in the sense that there are a lot of applicants for any given position.
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Not part of a conglomerate, and proud
Employees describe MGM as a "casual" and "friendly" place to work with a "young and energetic" workforce, though one insider says "MGM is still in a rebuilding phase after years of corporate turmoil. But it is now controlled by a respected entertainment management team led by former Paramount chief Frank Mancuso." One insider says: "MGM is smaller than the rest of the major entertainment studios in most areas, and unlike, say, Warner Bros., we are not a subsidiary of a larger conglomerate, and I think that helps contribute to the relative family atmosphere and a sense of personal empowerment." Aside from the obvious perks of working in the entertainment industry - "you never know who'll you meet" - MGM offers its employees other fringe benefits. Once a month "sneak preview screenings" of soon-to-be released films and discounts at the Studio Store, which "is great for one-of-a-kind Christmas gifts." "The environs are pleasant- lots of cool restaurants, including a studio restaurant called Cutters." The complex "also has a gym and a food plaza." The studio is in Santa Monica "a beautiful and safe area within walking distance of art galleries and other prominent entertainment businesses, such as MTV's West Coast office."
Working hard, but loving it
Depending on your department, dress code varies from casual to formal: "Creative departments tend to be more relaxed." Another "average perk" of the entertainment industry is a healthy salary. Upper management is "mainly white male," but "all kinds of people" work at MGM; "every nationality under the sun." Inappropriate or "discriminatory" behavior "would not be tolerated" at the company. Hours are 9 to 6, with "occasional, but paid" overtime. Employees at MGM are "always contenders for promotions," which means "even better perks the higher you go." However, employees have "very demanding schedules," and it is not "unusual to come in over the weekend." Still, despite the toil, "most people seem genuinely happy and excited to be working here."
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Human Resources
(310) 449-3569
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DreamWorks SKG;Paramount;Sony Pictures Entertainment;Twentieth Century Fox;Universal Studios;Walt Disney;Warner Bros.
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