For much of the last decade, Metro-Goldwyn-Mayer has been troubled by financial turmoil and infuriating production stops and starts, it appears that the studio finally has its act together, according to a New York Times analysis today. Shares of MGM Holdings’ thinly traded over-the-counter stock have risen 50 percent since April, to about $58.50. Revenue almost tripled in the last quarter, to $339 million, according to the company. Helped by repeated Standard & Poor’s upgrades over the last three years, MGM now has access to revolving lines of credit totaling $750 million. “The company was on death’s doorstep and now has effectively no debt and is generating a ton of cash,” said Kevin Ulrich, co-founder of Anchorage Capital Group, a New York investment firm that is MGM’s largest single owner, with a 30 percent stake. Many initially bought MGM debt, which was converted to equity in 2010 as part of a pre-packaged bankruptcy. If hedge funds are willing to stick with MGM, it would underscore an important shift on Wall Street regarding Hollywood. A few years ago, when the DVD business collapsed and DVRs changed the habits of television viewers, many analysts and investors soured on filmed entertainment. But lately that opinion has shifted. Movies and TV shows are becoming more valuable again because of box office growth overseas and the eagerness of streaming services like Netflix and Amazon to acquire content.
