MGM Comes Roaring Back to Rebuild Its Brand

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Feb. 18 (Bloomberg) -- Brent Lang, senior film writer at The Wrap, and Bloomberg senior West Coast correspondent Jon Erlichman examine how MGM rebuilt its brand on Bloomberg Television’s “Market Makers.”

Which owns "james bond" would have problems.

What is going on?

What was the problem at mgm?

The problem was they were saddled with about $5 billion worth of debt and they needed to clean up their books and under gary barber, their chairman and ceo, they have done a very impressive job of improving their financial health.

They have about $50 million in cash on their books and they have a revolving fund, largely untapped of about $700 million.

This is a very different company than it was just four years ago.

When i think mgm grand, the last time i said it i was going to see a fight in las vegas.

Does this company need to reinvent itself and is robocop count as a reinvention?

Isn't everybody doing their own version of a "robocop." ? mgm has this big library of movies they could tap into.

Miramax is in the same boat.

If the biggest part of a value of the business is tied to the stuff you've already got, then going back to the well is a good strategy because it allows you to increase the value of what you have got.

You look at some of the other stuff they are doing.

They are doing a sequel to "21 jump street." hot tub time machine.

Not that those are the best examples, but you have got to go back, you have got to find a way to make everything valuable when you go to sell tv versions of it.

They are doing a lot of that.

There, it -- cutting streaming deals.

The biggest bonus they got was the success of those blockbusters, the hobbit films and sky fall put them in a much better position.

You would expect that, right?

Sky fall is obviously going to do well.

Sky folded better than any bond in history.

Nobody would have planned for that.

It gave them a nice, impressive head.

Look at their key franchises.

Lord of the rings.

Rocky.

Maybe young kids do not remember.

That was massive.

You see that line the beginning of gone with the wind.

That title has gone to turner.

They still have an impressive amount of titles.

They have about 4000 film library titles.

About 10,000 television titles.

Pink panther, which they are looking to reinvigorate.

Rocky.

Creed spinoff with michael b jordan.

Is there a risk that those titles are too old to reconnect with?

Robocop is pretty old.

Not as old as pink panther.

It has been 25 years since robocop.

You did see some fatigue on the domestic audience, in terms of its performance.

Less of an appetite to see a remake.

Foreign audiences, which are really driving the box office right now, seem to be really inclined to embrace this film.

70% of its $100 million total has come from foreign audiences.

They may not have seen the first robocop and they probably did not see it in 3-d if they did.

Is it all about international?

I think brent has a good point.

Carrie is another one they brought back.

The foreign box office for that film made it a winner.

I think if you ultimately look at what they are going to do, they do kind of cap see upside a little bit i having to partner with other big layers, like sony, with a lot of these movies we are talking about.

To your earlier point, they are going to say, if the audience is not there, at least we're not shouldering the whole risk.

But let's take advantage of the foreign box office.

What is the play for mgm going forward?

Do they ipo?

Do they get bought?

If you talk to their investors, they are hoping for an ipo.

No plans are imminent.

That could definitely happen.

Already in secondary markets, that stock was trading at $25 when they left bankruptcy.

It is that $75 today.

Who could buy mgm?

Another studio, i mean?

When they ran into trouble, they were trying to sell themselves and they were not successful.

These days, a lot of people point to lions gate because it has been growing, they do have their own blockbuster franchises.

Everyone is asking for their next trick is going to come from.

They are big and television.

Mgm has a huge opportunity and television.

One of the biggest drivers and television -- in television has been fargo for fx bettina wulff on mtv.

-- or teen wolf on mtv.

This text has been automatically generated. It may not be 100% accurate.

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