MGM may be near worldwide distribution deal with Sony Pictures

Newly relaunched Metro-Goldwyn-Mayer Inc. is finalizing a deal for Sony Pictures to handle worldwide distribution of its movies and DVDs and for the two studios to co-finance upcoming films, according to people familiar with the situation.

Under the arrangement, Sony would fund half of MGM’s next James Bond movie, which is planned for release Nov. 9, 2012, and 25% of a potential follow-up. Sony co-financed and released MGM’s last two Bond movies, “Casino Royale” and “Quantum of Solace,” making it a logical home for Hollywood’s longest-running franchise.

Sony would also release all future films made by MGM and the studio’s already completed “Red Dawn” and “The Cabin in the Woods,” as well as handle sales of its 4,000-title library on DVD and digital platforms.

Although talks are far along, people close to the discussions cautioned that there are a number of complex terms still to be worked out and that it’s not certain a deal will be completed.

Since MGM emerged from bankruptcy in December and secured a $500-million credit facility, one of the top priorities for its new chief executives, Gary Barber and Roger Birnbaum, has been landing a distribution partner. The CEOs have laid off staff and opted not to release and market movies with the studio’s reduced resources. MGM, which stopped developing and producing movies because of its financial woes, does not have its own slate ready to be made.

As a result, Barber and Birnbaum have been seeking an overall deal with a partner that includes not only distribution but also an opportunity to co-finance movies already in the works.

MGM is hoping to co-finance several Sony movies that are already in or headed to production. One under discussion is director David Fincher’s remake of the Swedish hit “The Girl With the Dragon Tattoo.” MGM executives also wanted to invest in Sony’s 2012 reboot of “Spider-Man” but were rebuffed, a person familiar with the situation said.

Sony distributed MGM’s DVD library after it acquired a stake in the studio when it was sold to a consortium of investors in 2005. However, a year later it lost control of the library to 20th Century Fox after MGM management was disappointed by the sales of its titles, which include such classics as “Dr. Zhivago” and “Rocky.”

Fox’s deal to distribute the MGM library worldwide expires in September.

Last month, MGM made a separate deal with Warner Bros. to fully finance and release two movies based on “The Hobbit,” for which MGM owns half the rights.

MGM and Sony spokespeople declined to comment.

ben.fritz@latimes.com