U.S.A.
Everyone Else
Health
Science
Business
Technology
Sports
Video Games
Entertainment
Future
Humour
NEWS > BUSINESS > MGM OWNERS MULLING SALE ON EBAY DEADLOCKED ON SHIPPING COSTS
MGM OWNERS MULLING SALE ON EBAY DEADLOCKED ON SHIPPING COSTS
November 16 2009
Hollywood, CA – Over the last decade the media landscape has changed dramatically. The rise of the web, and the growing power of video games, has driven revenues and mindshare ever further downward. That reality has been a very difficult for traditional 
media companies to deal with and while some have continued to flourish in the new age, others have struggled to maintain their aging business model and are now facing a very uncertain future.
Metro-Goldwyn-Mayer is a different case altogether. At one time, the studio was the biggest dog on the block, even boasting the slogan “more stars than there are in heaven”, something which has not been the case for many years. Passing from owner to owner and never having been able to firmly establish fresh franchises in an era that demands sequels, MGM’s fortunes have been sketchy for at least the last three decades. Now, once again, the studio is deep in 
debt and her creditors have shown little interest in helping to right what they likely see as a sinking ship. That turmoil has prompted executives to put the once venerable studio up for sale, and are apparently considering doing it in the most 21st century type of way. While still debating the reserve value of the company, executives are reportedly deep in discussion as to what the shipping costs for the studio will be once it is finally put up for auction on eBay.
“The studio has one the most coveted franchises in the movie world. They’ve been able to prove that James Bond can move into the 21st century very definitively and that will likely get them a lot of interest but like anything if they set the price too high they will shoot themselves in the foot,” said a Hollywood insider who preferred to remain nameless. “Yes, they do have thousands of catalogue titles but with the diminishing returns on DVD and other ancillary sources a lot of potential buyers might balk at a high reserve or some ridiculous buy it now price and that will force their value into the toilet, something which they are unlikely to be very happy about.”
Like many Ebayers, many believe that executives may set the initial price low and demand a lot for shipping in order to recoup the difference. Such a practice is common on the site though is largely frowned upon in the community.
“Though very few people like high shipping costs the reality is there are going to be very few bidders for the studio. You are talking about something that’s worth at least a billion dollars so the average eBay buyer is likely to stay away. Truth be told even if were a little cheaper many might still stay away,” said Scrape TV Business analyst Ken Green. “The bigger problem for the studio is that a lot of potential bidders might not know how to use eBay or even access it. There’s a good reason that many of the studios have been so hesitant to embrace the internet and a lot of that has to do with their limited experience with it, which could limit potential bidders.”
Estimates for the costs of the studio range between 1.5 and 3.5 billion but it’s not clear whether or not that would include shipping.
“Really what it’s going to come down to is whether or not they put it up for a reasonable price, what their shipping costs are, and whether or not collectors really see value in their library. Obviously, Bond is a no-brainer but it’s the other films, things like ‘Lifeforce’ and ‘Species’ that will really be the make or break,” continued Green. “Again though, as with many transactions if they get a little too greedy or if the item is not exactly as promised they will paint themselves into a corner. Considering MGM’s history it would be a good idea for the winning bidder to use PayPal to make their payment.”
Other major studios are likely out of the running due to the fact that eBay is on the internet.
William Ashford, Business Correspondent
NEWS > BUSINESS > MGM OWNERS MULLING SALE ON EBAY DEADLOCKED ON SHIPPING COSTS
LINK IT! http://scrapetv.com/News/News%20Pages/Business/pages-3/MGM-owners-mulling-sale-on-eBay-deadlocked-on-shipping-costs-Scrape-TV-The-World-on-your-side.html |
TWEET IT! http://bit.ly/3jgy2S |
BOOKMARK IT!  
|
|---|
Scrape Store
