A Case Study On The Bankruptcy Of MGM

Film industry in each country has been in a boom since the new millennium. The quality of movies and the box office has been enhanced a lot since then. However, Metro-Goldwyn-Mayer Inc. known as MGM went into a bankruptcy after more than80years of development. Even though, bankruptcy is no surprise at all for this once very successful film company.How do all these happen? Is there any certain link between the bankruptcy and the American social system? What sort of way for MGM to select if it wants a revivification after its bankruptcy and reorganization?Within all these doubts, this paper analyzes the reasons of MGM falling into decay step by step through its own development and history.On one hand, we initiatively probe into the changes of management positions in MGM’s history and some other issues such as the disintegration of the power structure in Hollywood; On the other hand, we also accentuate the influences of politics, economy, human culture existing in American social system on the development of film companies in Hollywood.Meanwhile, this paper analyzes the reorganization based on MGM’s bankruptcy institution including the whole journey of MGM’s reorganization, the bankruptcy institution for corporations within the reorganization as its core and some thoughts on the development of Chinese film industry through this whole experience.So far, there has been little study on the bankruptcy of MGM—which was once on top of the Hollywood as a very important film company in American film history. The introduction part of this paper discusses the current study results on this theme through the background, the meaning and the ideas.The first chapter focuses on MGM’s crises that led to its final bankruptcy when it was developing so splendidly. The competition among the management inside the company definitely impacted its development, and then MGM lost many of its film-making talents during1930s to1940s when Hollywood blacklist incident happened. With the competition from television stealing its audiences, the suburb-migration of residents actually made this situation with fewer and fewer attendances worse. All these crises started the journey of its falling.The second chapter puts more efforts on talking about the reasons of MGM’s unavoidable fate. Part of this chapter explores the very first cause of its falling through the changes of its management positions.Another part analyzes the bankruptcy through the acquisition carried out by Sony Pictures Entertainment. This acquisition directly led to the bankruptcy alongside the course of the slow falling influenced by Kirk Kerkorian. Besides these, this chapter studies other reasons of the bankruptcy synthetically such as its enormous debts with so many other serious problems that can not get solved immediately and easily. The phenomenon of MGM’s bankruptcy is definitely the product of American social system, so the third chapter digs into the details on whether there is any link between this phenomenon and American social system since this once-on-top-of-the-Hollywood-company MGM went into broke in the end.In the last chapter, we develop a deeper thought on the film bankruptcy institution which makes bankruptcy reorganization a core by the chance of the bankruptcy reorganization of MGM and think about the development of film industry in China through this whole study internally and externally.