Metro-Goldwyn-Mayer (MGM) and Tom Cruise Harvard Case Solution & Analysis

In November of year 2006, Harry Sloan, the chairman and CEO of Metro-Goldwyn-Mayer Inc. (MGM) provides movie star Tom Cruise and his business partner Paula Wagner a chance to run United Artists (UA), an inactive studio inside MGM's portfolio. Just over two months previously, Viacom chairman Sumner Redstone freely complained about Cruise's controversial behaviour and unexpectedly stopped Cruise and Wagner's 14-year relationship with Viacom's movie studio, Paramount Pictures.

Sloan's suggestion gives Cruise a chance to strike back. Can Cruise, Wagner, and Sloan, who regards the deal as an "intriguing experiment" aimed at aligning the incentives of studios and creative gift, get the partnership work?

PUBLICATION DATE: November 05, 2007 PRODUCT #: 508057-HCB-ENG

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