MGM Bankrupt? The Hobbit Needs a Bailout

Just when all the news about The Hobbit put a shiny light on the progress, another dark shadow looms overhead. One even the Fellowship may not be able to rescue them from. Unless of course the Fellowship has a spare 3 billion dollars.

MGM appears to be on the brink of bankruptcy and recently begged their investors for a break so they could fund their upcoming films like the Hobbit.

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It turns out that the studio is on the verge of bankruptcy.

The call was to make a desperate plea for money in the amount of $20 million in short term and another $150 million to get through the rest of the year. One major project that MGM needs to fund is Peter Jackson’s “The Hobbit” prequel.

So what happens when MGM can’t get their own bailout.

Does this mean the end of films opening with a lion’s roar?

Does this mean doom for The Hobbit films? I am sure there will be other studios more than willing to pick up the rights to The Hobbit should MGM close doors, but this just means more delays.

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