Like other film industry pioneers, Marcus Loew started with the
nickelodeon crazy and built it into an impressive chain of theaters. But
by the late 1910s, one of the major problems was having a constant supply
of good films for his theaters.
Loew had been one of Adolph Zukor's (Famous Players) best customers
until Zukor started charging a percentage of the theaters receipts for his
bigger pictures. Loew knew that it was time to go the way of several other
theater chain owners and procure their own supply and distribution companies.
In 1920, Loew was offered Metro Pictures. Metro had some good talent
under contract, both directors and actors. The problem was that Metro was
not well equipped and didn't have good distribution set up. Still the acquisition
of Metro was an excellent introduction into the production side of film
making.
After a couple of years, the problems facing Loew had improved
but as he continued expanding his theater chain, he need more production
and the management problems were a real headache.
In 1924, Lee Shubert, who was on the board of Loews AND on the
board of Goldwyn Pictures, a studio that was that was floundering, approached
Loew that it may be time to expand.
Goldwyn had lost it's management, but were stronger than Metro.
Goldwyn had great studio facilities, a great roster of directors and actors,
great distribution set-up AND had taken in Cosmopolitan Pictures which gave
direct access to the William Hearst magazine and newspaper empire for marketing.
As a side benefit, rumors are that Loew hated the parrot logo of Metro but
LOVED the Leo the Lion logo of Goldwyn.
As fate would have it, the attorney for Goldwyn Pictures was J.
Robert Rubin, who was also the attorney for Loews, so a takeover easily
worked out. The only thing missing was the management to handle such an
expansion.
AGAIN, J. Robert Rubin also just happened to be the attorney for
Louis B. Mayer. Mayer had the management team but didn't have the assets.
Mayer's management skills was just what was needed to bring everything together.
Mayer also brought with him Irving Thalberg who was considered at the time,
the 'boy wonder' of Hollywood.
A deal was quickly struck with Loew's absorbing Goldwyn Pictures
and Louis B. Mayer Productions. Metro-Goldwyn would control production and
distribution as a subsidary of Loew's. Contracts were signed with Mayer
as studio chief Thalberg as supervisor of production and Rubin as secretary.
All 3 were to be vice-presidents with Mayer and Thalberg to be at the Goldwyn
studio and Rubin at the Loews headquarters in New York.
Metro already had their headlining stars of Ramon Novarro, Alice
Terry, Viola Dana, Jackie Coogan, Buster Keaton and Monte Blue. They also
had directors like Rex Ingram and Victor Schertzinger.
Goldwyn brought their headlining stars of Conrad Nagel, Blanche
Sweet, John Gilbert, William Haines and Marion Davies. Their director contributions
were King Vidor, Mrshall Neilan, Erich von Stroheim, Robert Leonard, Charles
Brabin and Victor Seastrom. Goldwyn also contributed writers Frances Marion
and Carey Wilson and art director Cedric Gibbons AND the Leo the Lion trademark
devised by Howard Dietz.
Mayer brought production manager Thalberg and headlining stars
of Lon Chaney, Norma Shearer, Renee Adoree and Hedda Hopper and directors
Fred Niblo, Reginald Barker, Hobart Henley and John Stahl.
This massing of talents caused the using of the slogan 'More Stars
Than There Are in Heaven'.
With Mayer taking control, his name was soon added making the name
complete as Metro-Goldwyn-Mayer.
This gave MGM a dominance in Hollywood and Mayer continued to increase
his dominance over the next 10 years by continually expanding and adding
talent in all directions.
By 1934, MGM had expanded to 23 sound stages on 117 acres. The
property included everything from a lake, harbour, park, a jungle, streets
of houses and the world's largest film laboratory. But MGMs biggest asset
was their people. By 1934, MGM had about 4,000 employees with 61 featured
actors, 17 directors and 51 writers under contract.
In 1934, Mayer brought in Hugh Harman and Rudolph Ising and created
the MGM Animation
Department.
In 1936, the death of Irving Thalberg was a major blow to the studio.
Mayer handled both management and production. He started instituting more
series oriented films to take advantage of already established money makers.
Mayer kept the management end going well, but soon the quality of production
begin to fall. The replacement for Thalberg was Dore Schary.
In 1951, Mayer had a major disagreement and left MGM which started
a trend. In 1955, Schenck stepped down as president of Loews and was replaced
by Arthur Loew who stepped down the next year and was replaced by Joseph
Vogel.
Louis B. Mayer died in 1957. (That same year, by coincidence, MGM
lost money for the first time in their existance)
In 1958, the government stepped in and divided Loew's and MGM with
Loew's retaining the theater chain and the radio station WMGM; MGM kept
the studio, distributing companies, and international theaters and distribution
(which had been developed by Arthur Loew who was one of Marcus Loews twin
sons)
Sol C. Siegel took over as head of MGM but left in 1962 to have
Robert Weitman take the reigns until 1969 when Herbert Solow briefly took
control then James Polk Jr. and then James Aubrey Jr. This started share
deals and proxy battles that wound up with Kirk Kerkorian with controlling
interest.
Liquidation of many of the overseas properties became a focus until
1973 when Aubrey announced with withdrawal of MGM from distribution. A contract
was created with United Artists for domestic distribution and to Cinema
International Corp. (CIC) for international distribution with CIC buying
the MGM owned international theaters.
In 1981, United Artists was purchased by MGM with UA becoming a
wholly owned subsidiary. In 1983, the name was changed to MGM/UA Entertainment
Co.
In 1986, Turner Broadcasting bought MGM/UA for approximately $1.5
billion and sold the UA portion to Tracinda Corp. along with the MGM motion
picture and television production and distribution businesses and the home
entertainment division. The MGM lot and laboratory were sold to Lorimar-Telepictures.
Turner retained only the MGM film library.
In 1990 Pathe Communications Corp. acquired MGM/UA for $1.3 billion
and changed the name to MGM-Pathe. Lawsuits and corporate problems started
immediately. Italian financier Giancarlo Parretti purchased MGM-Pathe and
United Artists which stopped the lawsuits and corporate problems but immediately
there were financial problems. By 1991 Parretti was removed from his position
as chairman with control given over to Alan Ladd Jr. MGM-Pathe received
a $145 million loan allowing them to start up film distribution again.
In May 1992, Credit Lyonnais bought up 98.5% of MGM-Pathe eliminating
Parretti. The name was changed by to Metro-Goldwyn-Mayer Inc.
Despite a few commercial successes, Credit Lyonnais was unable
to stem the tide of red ink during the mid-1990s; putting the studio up
for sale with the only bidder being Kirk Kerkorian (again). Kerkorian sold
a portion of the studio to Australia's Seven Network and installed a top
notch management team. This move allowed Wall Street to pick up MGM stock
again.
In 1991, MGM bought the properties of Orion Pictures and Goldwyn
Entertainment.
In 2001, MGM severed ties with UIP, which was a joint distribution
company for MGM, Universal and Paramount, for their international distribution
and shifted international distribution to 20th Century Fox.
In 2004, Sony purchased MGM for approximately $5 billion. Since
that time MGM has restarted their domestic distribution and has started
up making films again.
Go Back to /newsite/index/countries/US/history/studios/MGM/MGM Article
Go Back to Studio Section
Here is a list of films in our archive released by MGM