MGM's Sloan signs three-year deal

Exec will continue as chairman, CEO

By TATIANA SIEGEL

Sloan

After three years on the job, MGM chairman-CEO Harry Sloan has signed a new three-year pact to stay at the helm of the Lion.

The move signals a vote of confidence in the exec amid recent speculation that MGM’s financial backers have become impatient with the company’s turnaround and with Sloan’s shift in strategy.

Sloan was brought in by the consortium of MGM investors in 2005 to oversee what was expected to be an operation focused mostly on distribution with a significantly pared-down staff. While that strategy yielded a few hits — "Rocky Balboa" and "1408" among them — the once-mighty Lion had become a shadow of its former self, garnering only a small slice of market share.

Over the past year, Sloan began taking steps to revamp MGM as a full-fledged production and distribution outfit. Chief among those moves was tapping former Universal Pictures executive Mary Parent as chairman of MGM’s worldwide motion picture group. In fact, over the past few months, MGM has become an aggressive buyer of spec scripts and original pitches and has greenlit or fast-tracked several homegrown productions — a considerable reversal from Sloan’s original approach of relying on outside producers to shepherd sequels based on films from MGM’s vast library.

"To create another page in the storied history of MGM is the most exciting challenge I’ve had in my career," said Sloan, who headed three media companies before joining MGM: SBS Broadcasting, Lionsgate Entertainment and New World Entertainment. "With the support of the MGM board, we’ve been able to make significant progress, and I believe the next three years will be a testament to the power, passion and creative vision of our new management team."

With a mandate to expand, Sloan also helped bring two anticipated movies based on J.R.R. Tolkien’s "The Hobbit" to the studio. During his tenure, he also pacted with 20th Century Fox to distribute MGM’s films and TV series for international theatrical and worldwide home entertainment and brought in Tom Cruise and Paula Wagner to rebuild the United Artists brand and supply movies for the MGM pipeline. But while the Cruise-Wagner deal sparked headlines, it has resulted in only one film to date: the box office disappointment "Lions for Lambs."

Still, Sloan is credited with revitalizing a global TV sales force and bringing MGM into the digital age by launching MGM HD as the Lion’s first wholly owned channel in the U.S. He also brought in former News Corp. and Sony Pictures financial veteran Bedi Singh as president of finance and administration, and chief financial officer.

"We appreciate Harry’s commitment to building value at MGM and believe he is executing the right strategy for the company," said Providence Equity Partners CEO Jonathan Nelson on behalf of the MGM board.

MGM’s owners include Providence Equity Partners (29%), TPG (21%), Sony Corp. of America (20%), Comcast (20%), DLJ Merchant Banking Partners (7%) and Quadrangle Group (3%).