SANTA MONICA, California, Oct. 10 -- A group led by billionaire Kirk Kerkorian completed Thursday its $1.3 billion acquisition of Metro- Goldwyn-Mayer Inc. for French bank Credit Lyonnais. New owners of the legendary studio include MGM Chairman Frank G. Mancuso and Seven Network, an Australian television and cable network. Kerkorian first gained control of MGM in the early 1970s and bought United Artists from Transamerica a decade later and merged the operations while selling off many of the assets. He sold the entire studio in 1989 to Italian financier Giancarlo Parretti in 1989 for $1.4 billion, and Credit Lyonnais gained control three years later when Parretti defaulted on loans. The bank was required by U.S. laws to sell off the studio within five years and put MGM up for sale earlier this year in hopes of attracting bids of more than $2 billion. But its mixed track record, with less than half a dozen hits in recent years, and previous sales of distribution rights pulled down the value of the studio. MGM had no successes between 1991 when it released 'Thelma and Louise,' and 1994 with 'Stargate.' It scored last year with 'Get Shorty,' 'Goldeneye' and 'Leaving Las Vegas' and with 'The Birdcage' this year but has stumbled since then. 'We are now able to continue the dynamic creative environment we have fostered over the past three years and, at last, can clear away the cloud of uncertainty that has shadowed this company for so long,' Mancuso said.
Activity on future projects has been slow at MGM this year because of the impending sale. Kerkorian, who sold off MGM in 1989, has not indicated if he will try to compete with major studios in backing projects at a time when average production costs have jumped to more than $40 million per film. In one positive sign, MGM reported last month it was in final talks to sign Roger Spottiswoode to direct the 18th James Bond movie with shooting expected to begin in the first quarter. The studio revived the lucrative Bond franchise last fall with the release of 'Goldeneye,' which became a major hit for MGM, generating $106 million domestically and $350 million worldwide. The Bond movies, which began in 1963 with 'Dr. No,' have generated domestic grosses of $750 million and worldwide ticket sales of $2.5 billion.
