Tom Cruise Film 'Lions for Lambs' Could Hurt MGM Financing

Authored by Scott Goldberg on November 2, 2007 - 5:04am.

Might Tom Cruise hurt MGM's Financing Efforts?

Negative reactions to Tom Cruise’s Lions for Lambs, directed by Robert Redford and co-starring Meryl Streep, could have a negative impact on Metro-Goldwyn-Mayer’s attempts to raise funds for film productions, The New York Post reports. MGM had hired Goldman Sachs to assist in raising between $500 million and $1 billion prior to this summer’s credit market crash, and though still tight, the investment bank continues pursuing funds.

But according to the report, Lions for Lambs is “so far tracking the worst among audiences for any Cruise movie to date,” making efforts to complete MGM’s fund more difficult. The movie debuts on November 9th.

Lions for Lambs is the first effort from United Artists under the leadership of Cruise and Paula Wagner.

"Tom and Paula's track record as producers has been disappointing," said an unidentified film-financing source, "and people are wondering why MGM thinks of them that way [as producers]."

Yet another source contradicts the idea that investors will avoid MGM because of its Cruise-Wagner ties. The company’s real value lies within its sequel rights to franchises such as the James Bond series. The source said MGM will complete financing on “attractive terms” by early 2008.

"Goldman will do this financing successfully for MGM, its investors and everybody else involved," said the source.