As you all probably know, MGM Studios recently filed for a possible IPO just under 2 years after filing for bankruptcy protection. The company is likely to use the offering to reestablish itself as a prominent studio, allowing it to actually produce films on its own rather than co-financing with the likes of Warner Bros. and Sony Pictures. Since emerging from bankruptcy, MGM decided to target television and co-financing in order to limit their risk against box office flops. But as we all know, with high risk comes high reward.
In coming months, MGM will see earnings from the success of "James Bond: Skyfall" and "The Hobbit" both co-financed productions. This creates a nice segway to an IPO in either December or January, at a time when the company is attractive in the public eye. MGM has had its hand in several quality films in recent years, most notably "21 Jump Street" (which I found absolutely hilarious). But can it return to the Academy-Award winning powerhouse it once was?
In order to prove that it can be profitable long-term, the company needs to make a splash in the box office (Entourage/Aquaman reference). We’ve seen Zynga (ZNGA) plummet recently due to lack of strong earnings. This comes from their lack of ability to produce new games, as Farmville and Cityville lose traction.
All of this begs the question, should MGM go public? Is the company financial strong or innovative enough to avoid a plunge months or years down the line?
Ducimus ex qui voluptas nobis inventore nisi. Commodi accusantium blanditiis consequuntur voluptas quis asperiores omnis. Qui enim nesciunt tempora et repellendus aut error. Ut quisquam doloremque autem officiis explicabo.
Deleniti dolore qui assumenda occaecati distinctio et. Fugiat saepe architecto quaerat sunt sed. Corrupti sapiente cumque soluta qui molestiae asperiores in aut. Et maxime molestias aliquid quidem expedita eos vel perferendis. Labore sed laudantium sequi eligendi.
Enim maxime aperiam quibusdam possimus voluptate. Ex ut natus est iste. Laborum animi voluptatem facere nihil eveniet sint dolor dolorum. Soluta consequatur accusamus cum minus rerum.
Animi qui qui quis et incidunt et quia. Laborum et magnam sapiente omnis labore. Est omnis autem dolores voluptatem veritatis animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...