MGM taps money boss to build film fund

14-May-2008 • Bond News

Metro-Goldwyn-Mayer Inc. said Tuesday it has hired industry veteran Bedi Singh as its finance chief and head fundraiser for upcoming films, a further sign it is ramping up efforts to produce its own movies, reports Forbes.

The studio, taken private for nearly $5 billion in 2005, aims to establish a fund to co-finance its upcoming films, including "The Hobbit." The first installment of that series is scheduled for release in 2011.

Singh, a former Sony Pictures chief financial officer, will lead financing efforts.

"It's no secret that we've been looking for additional film financing for MGM movies," spokesman Jeff Pryor said. "That's going to be a key part of his role."

MGM has been trying to turn around its movie production business since its revived United Artists subsidiary, headed by Tom Cruise and Paula Wagner, flubbed on its first production attempt with "Lions for Lambs" last year. The movie cost $35 million to make but has yet to turn a profit.

The studio hired former Universal Pictures production vice-chair Mary Parent in March and then quickly announced it had acquired the film rights to Robert Ludlum's book "The Matarese Circle" and Ben Wexler's comedy screenplay "Bobism."

Since the 2005 leveraged buyout by private equity firms Providence Equity Partners and Texas Pacific Group, Sony Corp. and Comcast Corp., MGM has generated revenue primarily through distribution of independent fare such as The Weinstein Co.'s "Halloween" last year.

It is now aiming to bolster its production lineup, take a greater stake in movie production and reap more of the profits.

United Artists already has a $500 million credit line from Merrill Lynch, but MGM is seeking additional financing partners for its movie slate, which includes future "James Bond" and "Pink Panther" sequels.