Home Theater Forum  ›  Forums  ›  Entertainment and Media  ›  Music  ›  Sony outbids Time Warner for MGM Assets
Forum Nav More Forums | All New Posts | New Thread

Sony outbids Time Warner for MGM Assets

#1
Rating: 0
9/13/04 at 11:14am
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
http://story.news.yahoo.com/news?tmp...ia_mgm_sony_dc

This could give BluRay an advantage in the hidef format wars given the strong title selection they will hold. This could impact the movie and music areas both in my opinion.

My hope is that this win will put pressure on the entire entertainment community to back one format so we can avoid a format war in hidef video.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#2
Rating: 0
9/13/04 at 12:26pm
  • Joined: June 1999
  • Post Count: 2,607
I guess we can expect more overpriced DVDs with little extras, P&S releases and constant double/triple/quadruple dipping to occur.

This is bad news for DVD fans.
Export to Wiki
#3
Rating: 0
9/13/04 at 12:46pm
  • Joined: December 2001
  • Location: Columbus, OH
  • Post Count: 6,427
Let's hold out hope that Warner will buy Sony sometime in the near future.


The man I loved - the man who vanished - he never came back at all. But maybe he's still out there, somewhere. Maybe some day, when Gotham no longer needs Batman, I'll see him again.
Export to Wiki
#4
Rating: 0
9/13/04 at 12:49pm
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Quote:
This is bad news for DVD fans.


On the contrary I think it is great news for DVD fans. This will put a lot of pressure on the studios to release one single hidef video format.

Quote:
Let's hold out hope that Warner will buy Sony sometime in the near future.


Not likely to occur given Time Warner's hugely leveraged balance sheet.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#5
Rating: 0
9/13/04 at 3:12pm
  • Joined: September 2003
  • Post Count: 414
I think Lee has shares in Sony.
Export to Wiki
#6
Rating: 0
9/13/04 at 3:20pm
  • Joined: June 1999
  • Post Count: 2,607
Quote:
On the contrary I think it is great news for DVD fans. This will put a lot of pressure on the studios to release one single hidef video format.


Hi-Def is still an uncertainty.

What is a certainty is Columba TriStar's (ie. Sony) poor DVD practices. Warners has released alot of outstanding DVDs the last couple years and has been the best studio (with regards to DVD) in that same timeframe.

Most fans of the current format would prefer Warner to handle the MGM library instead of Columbia TriStar.
Export to Wiki
#7
Rating: 0
9/13/04 at 3:55pm
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Quote:
Hi-Def is still an uncertainty.


True, but this is a big victory whether you like Sony or not.

Quote:
Warners has released alot of outstanding DVDs the last couple years and has been the best studio (with regards to DVD) in that same timeframe.


I agree but this is not proof that Sony will do a poor job with hidef releases.

Quote:
Most fans of the current format would prefer Warner to handle the MGM library instead of Columbia TriStar.


Perhaps but maybe even more would want to avoid a format war for HD DVD.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#8
Rating: 0
9/13/04 at 5:38pm
  • Joined: June 1999
  • Post Count: 2,607
Lee,

the general consensus on the Software forum is most will NOT move to Hi-Def DVD anytime soon.

People are sticking with DVD, so people aren't happy that Sony has the MGM titles - when it would've been so much better that Warner has them.

I want to move to Hi-Def, but right now there are too many unknowns (format, price, quality and the titles I like).

Quote:
I agree but this is not proof that Sony will do a poor job with hidef releases.


No, the current DVDs released by Sony is an indication that they may do a poor job with Hi-Def releases - including their infamous double/triple/quadruple dip and their higher-than-average pricing strategy.

Sony can win the Hi-Def wars, but I want Warner to handle the MGM titles.

BTW, when does the finalized spec for BluRay get released... and is DSD still not supported?
Export to Wiki
#9
Rating: 0
9/13/04 at 6:02pm
  • Joined: April 2001
  • Post Count: 422
O.K., I'll bite. What does this have to do with the music forum? Just curious.

KrisM
Export to Wiki
#10
Rating: 0
9/13/04 at 6:22pm
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Quote:
the general consensus on the Software forum is most will NOT move to Hi-Def DVD anytime soon.


Did I make any claims about adoption?

If the industry offers movies in hidef I think many will want them.

Quote:
I want to move to Hi-Def, but right now there are too many unknowns (format, price, quality and the titles I like).


There are always unknowns before the format becomes available...

Quote:
Sony can win the Hi-Def wars, but I want Warner to handle the MGM titles.


That doesn't look possible now. Why don't we give Sony a chance and see what they can do? I saw the their hidef video of Spiderman 2 on a Qualia projector at HE2004 and it was stunning.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#11
Rating: 0
9/13/04 at 6:44pm
  • Joined: June 1999
  • Post Count: 2,607
Quote:
O.K., I'll bite. What does this have to do with the music forum? Just curious.


True, true.

This is the music forum and I brought up movies... my apologies.

This doesn't look to have any impact on music whatsoever, as Sony has yet to announce DSD for BluRay.

This thread should be closed, as there's already one in the Software forum.
Export to Wiki
#12
Rating: 0
9/13/04 at 7:09pm
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
We've been discussing BluRay here for months.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#13
Rating: 0
9/13/04 at 9:43pm
  • Joined: May 1999
  • Post Count: 6,009
Sony has shown no indications of using Blu-Ray as a music format, in fact, the opposite is true.

As far as format wars go, I could care less whether HD-DVD or Blu-Ray becomes the standard (now that Blu-Ray has been forced to include advanced video codecs), I just hope that the format war is settled before products hit the marketplace.
Export to Wiki
#14
Rating: 0
9/13/04 at 10:14pm
  • Joined: October 2001
  • Post Count: 21
I wanted Warner to win so that all of the rights issues concerning The Hobbit would be out of the way. I don't know if we will ever see Jackson's version now.

Patrick
Export to Wiki
#15
Rating: 0
9/14/04 at 7:27am
  • Joined: May 2000
  • Post Count: 4,099
When it is the last time Sony developed a standard that was widely accepted?

Personally, I can't remember one.

Jason
My DVD Collection
Export to Wiki
#16
Rating: 0
9/14/04 at 7:30am
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Quote:
I wanted Warner to win so that all of the rights issues concerning The Hobbit would be out of the way. I don't know if we will ever see Jackson's version now.


I would not worry. I am sure with so much revenue on the line something will be worked out.

Quote:
I just hope that the format war is settled before products hit the marketplace.


Me too. That's why I think this is important.

I read an interesting statistic on the deal in The Wall Street Journal today. The companies involved, Sony and MGM, estimate the combined library will include 50% of all color movies that have been made.

Also, apparently the bid was a last minute surprise delivered right before the board met last Thursday to consider the offers. I guess Sony and the equity partners really see value in this library.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#17
Rating: 0
9/14/04 at 10:11am
  • Joined: February 1999
  • Post Count: 1,152
Quote:
When it is the last time Sony developed a standard that was widely accepted?


Depends on your definition of "widely accepted" - by who, manufacturers or consumers? Minidisc, while not entirely popular in the U.S. was widely adopted in Japan and Europe, and supported by many major manufacturers.

* No longer looking for Hi-Vision Laserdiscs *
(I buried that format)

www.16cylinder.com
www.jet-x.com

Export to Wiki
#18
Rating: 0
9/14/04 at 10:47am
  • Joined: February 2004
  • Location: St. Hubert, Quebec
  • Post Count: 2,074
I think co-developing the CD qualifies as a widely accepted standard.

Never try to teach a pig to sing. It wastes time, and it annoys the pig.

Export to Wiki
#19
Rating: 0
9/14/04 at 11:33am
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Quote:
I think co-developing the CD qualifies as a widely accepted standard.


True. I also think DSD is becoming a professional standard for archiving in some quarters as well. You can easily argue, that while not mainstream, DSD has been a success for Sony.

It certainly is a hirez standard for many audiophile labels and high end manufacturers.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#20
Rating: 0
9/14/04 at 11:34am
  • Joined: May 2000
  • Post Count: 4,099
Quote:
I think co-developing the CD qualifies as a widely accepted standard.


I think the key word there is "co-developing".

Problem is, most of the time, Sony goes on its own developing stuff. That's cool and all that, but other manufacturers don't want to play when someone else is holding all the cards (i.e. the rights and the royalties).

Not exactly promising for Blu-Ray (at least with Sony holding all the cards for it) to get widespread acceptance as a consumer format.

Jason
My DVD Collection
Export to Wiki
#21
Rating: 0
9/14/04 at 11:38am
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Quote:
Problem is, most of the time, Sony goes on its own developing stuff.


Not always. BluRay has the support of roughly a dozen companies or more. They also worked with several PC makers on the data specs.

Quote:
Not exactly promising for Blu-Ray (at least with Sony holding all the cards for it) to get widespread acceptance as a consumer format.


You have to give Sony credit for including many important mfrs such as Dell, HP, TDK, Matsushita (which owns several important Japanese brands) and many others. Now they can create real fear in the minds of the limited HD-DVD group by controlling HALF of the popular color movies. This makes for good business strategy as it raises the level of fear in studios that they will have a more formidable player to fight if they don't join BluRay. If this leads to another studio or two signing up then the game may be over for HD-DVD.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#22
Rating: 0
9/14/04 at 11:43am
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Here are some of the supporting companies:

Pioneer
Panasonic
Sony
LG Electronics
Samsung
Dell
HP
TDK
Philips
Sharp
Thomson
Mitsubishi Electric
Hitachi

http://www.blu-raydisc.com/Section-13469/Index.html

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#23
Rating: 0
9/14/04 at 1:21pm
  • Joined: March 2000
  • Location: Hollywood, California
  • Post Count: 3,644
Quote:
. . . apparently the bid was a last minute surprise delivered right before the board met last Thursday to consider the offers.
"[A]pparently"?

It's arguably neither here nor there, but this is not my understanding from people who know when the phone conversation between Dick and Alex took place.

The final pieces fell into place early Monday morning, not prior to last Thursday's board meeting.

-p
Export to Wiki
#24
Rating: 0
9/14/04 at 5:01pm
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Paul,

I said this (surprise bid at last Thursday's board meeting) because I read about the surprise bid in the Wall Street Journal.

You seem to be close to people involved. Can you give us an account?

Thanks.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#25
Rating: 0
9/23/04 at 4:02pm
  • Joined: March 2000
  • Location: Hollywood, California
  • Post Count: 3,644
Now we've got a deal, ya'll (unless Kirk changes his mind before the money changes hands between now and closing).

From a press release going out today:

[c]"CONSORTIUM LED BY SONY CORPORATION OF AMERICA, PROVIDENCE EQUITY PARTNERS, TEXAS PACIFIC GROUP, COMCAST CORPORATION AND DLJ MERCHANT BANKING PARTNERS ENTERS INTO DEFINITIVE AGREEMENT TO ACQUIRE METRO-GOLDWYN-MAYER[/c]

New York and Los Angeles, September 23, 2004 - A consortium led by Sony Corporation of America and its equity partners Providence Equity Partners, Texas Pacific Group, Comcast Corporation and DLJ Merchant Banking Partners, together with Metro-Goldwyn-Mayer Inc. (NYSE: MGM), announced today that they have entered into a definitive agreement under which the investor group will acquire MGM for $12.00 in cash per MGM share, plus the assumption of MGM’s approximately $2.0 billion in debt.

The investor group has committed a total of $1.6 billion in equity financing to acquire MGM as follows: Providence Equity Partners -- $525 million, Texas Pacific Group -- $350 million, Sony Corporation of America -- $300 million, Comcast Corporation -- $300 million, and DLJ Merchant Banking Partners -- $125 million. JP Morgan Chase has committed to lead a bank syndicate to provide up to $4.25 billion in senior debt financing together with Credit Suisse First Boston."

(Haven't forgotten about your request above, Lee.)

-p
Export to Wiki
#26
Rating: 0
9/23/04 at 4:05pm
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
This looks like a home run from my viewpoint...Sony had to put in very little equity to get this valuable content.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#27
Rating: 0
9/23/04 at 6:45pm
  • Joined: February 2002
  • Post Count: 2,950
Lee,

You seem to believe that this development will discourage a format war. I don't understand why you think that. If Sony now owns 50% of all color films, and the other studios presumably back WB and their standard, then Sony's purchase of MGM would seem to FEED the format war.

Had WB ended up with MGM, then Sony (with their relatively small Columbia catalog) would most likely be the sole holdout, and their position in any format war would be severely weakened.

I agree this development is good for Sony and good for Blu-Ray, but BAD for those who wish to avoid a format war in the future.

EDIT: Also factor in (as others have said) that WB is the best DVD studio out there and Columbia is practically the worst, I can't bring myself to be happy about this development.
Export to Wiki
#28
Rating: 0
9/23/04 at 6:53pm
  • Joined: March 2000
  • Location: Hollywood, California
  • Post Count: 3,644
From a valuation/deal perspective I agree, Lee.

We'll see on the creative issues though (such as what Sony does with Bond, various development/talent deals, the fate of Stargate and the kind of DVD issues being discussed in the other thread).

One thing the negotiation of which proved very complicated and the execution of which might prove just as much so in three or four years is the exit strategy of private equity. SPE will likely need to buy p.e. out as they inevitably desire to get out after recouping their investments, not unlike what we're seeing in the exhibition biz right now.

-p
Export to Wiki
#29
Rating: 0
9/24/04 at 7:37am
  • Joined: August 2001
  • Location: Atlanta
  • Post Count: 6,357
Quote:
You seem to believe that this development will discourage a format war. I don't understand why you think that. If Sony now owns 50% of all color films, and the other studios presumably back WB and their standard, then Sony's purchase of MGM would seem to FEED the format war.


Most media critics and journalists agree with me based on what I have read in WSJ, Variety, etc. The logic is that Sony builds extra momentum for BluRay which already has a lead in terms of company support. If Fox or Warner (remember they have not signed on to HD-DVD just NEC and Toshiba) or some major studio signs up then the BluRay format will control a majority of the films to be released in hi-def.

My bet is that other studios will see this, perhaps think some about DVDA/SACD war, and decide that one standard is an easier path.

P.S. I like your Star Wars graphics. I saw the documentary from the box set last night and was very impressed. Ken Burns can tell a great story.

Viewing: Sony KDSXBR150, Samsung 1400, DirectTV
Listening: Sony SCD777ES, Oppo980H, VPI Scoutmaster, Audio Research Electronics, Magnepan 1.6s

Export to Wiki
#30
Rating: 0
9/24/04 at 8:46am
  • Joined: February 2002
  • Post Count: 2,950
Thanks for the extra info, Lee. That does make a bit more sense, although I think we can pretty much assume that Warner will end up in the Toshiba camp.

I must find those articles you mentioned. Do you happen to have links?
Export to Wiki
Forum Nav More Forums | All New Posts | New Thread