Santa Monica, Calif.
Revenue: $1.39 billion
Loss: $438.1 million
A couple of years ago, MGM chairman-CEO Alex Yemenidjian told Lion employees he’d give bonuses to everybody whenever company stock hit a $30 share price. And true to his word, the studio topper did just that mere months after making the pledge.
MGM shares languish between $11-$12, partly the victim of the media sector’s fall from grace on Wall Street and partly due to investor concerns over a string of theatrical misfires.
MGM changed its head of marketing for the second time in recent years when industry vet Bob Levin ankled in July and former Universal exec Peter Adee took charge of the department. Year-end James Bond pic “Die Another Day” should help provide the studio with some good news.
For the present, home entertainment continues to be a healthy source of income for MGM, which draws upon its huge 4,100-title library to pump out a steady stream of DVD and homevid releases. Longer term, Lion watchers believe that company’s continued solid cash position points to some sort of important strategic acquisition eventually.