MGM, the film company responsible for more films than you can imagine, might soon sort out its debt problems, leading to a move forward on Peter Jackson’s The Hobbit project.
Speaking about the upcoming adaptation of J. R. R. Tolkien’s prequel to the Lord of the Rings trilogy, director Sir Peter Jackson spoke about the debt issues of MGM. The company, which was established in 1924, began going into serious debt during the early 80s in order to increase the amount of films it put out each year.
Unfortunately, the debt never went away, and as debts tend to do, it began to eat away at the company until, in 2009, the company was open to negotiations for its sale. This caused waves in the film industry, as it’s a huge company with the rights to an incredible amount of films – The Hobbit being one of them.
The Hobbit was one of the few films investors were interested in, ranking the film at the considerable value of $1 billion. Unfortunately, until sales are made and MGM is in a stable position financially or The Hobbit is sold off to a bidder, the film will remain in limbo.
On a lighter note, Jackson told the New Zealand Dominion Post that Warner Bros. were making considerable progress in their negotiations with MGM. “[We] should have certainty with The Hobbit sometime soon” says the director. Fingers crossed, everyone!