The Cat's 9th Life

But starting '97 with any slate at all will be very expensive. Most major studios spend about $1 billion a year making and marketing films; industry analysts say MGM/UA needs at least $700 million a year to start seriously competing again. That's big dough even by Kerkorian's standards. He has some deep-pocketed business partners — the Australian media conglomerate Seven Network put up $250 million against Kerkorian's $700 million, and the investment firm J.P. Morgan is loaning him another $400 million. Still, don't expect $100 million budgets for the studio's movies anytime soon. ''It's something I won't discuss,'' says Gary Rice, Seven Network's CEO, ''but we have budget and marketing limits. We won't be spending that kind of money.''

Instead, the new MGM/UA will be sticking with more mid-range projects, featuring mid-priced stars. Like a remake of 1968's The Thomas Crown Affair, to star Pierce Brosnan, who'll also appear in at least one more Bond flick. Three other remakes are also on the drawing boards — an undisclosed Preston Sturges picture, the Vincent Price thriller Theatre of Blood, this time directed by Chris Columbus (Nine Months), and an all-new Shaftthat the studio has made a verbal agreement with John Singleton to write, direct, and produce. There are also rumors of a Dustin Hoffman project in the works.

''I'm thrilled,'' says MGM's Marcus. ''We're all familiar with the material, so I can greenlight it immediately and not have to wait for a yes.''

Who Will Buy What Next? MGM/UA has had a history of mismanagement. Its hard assets are small compared to other studios'. But the studio had one thing going for it that made it worth $1.3 billion on the auction block. It was the only one for sale.

Many big players whipped out their checkbooks to try to buy the company. Along with the Warner-affiliated Morgan Creek, Rupert Murdoch's News Corp. (which owns Twentieth Century Fox), and the Dutch entertainment giant PolyGram both placed bids. The losers put on a brave face, but clearly they hurt. ''Are we disappointed? Not tremendously,'' Fox president Bill Mechanic says. ''This was a library acquisition for us. We wish Frank's group well.'' And Kerkorian? ''That's their problem, not ours.''

As Kerkorian begins to digest his victory, his rivals are already sniffing around for fresh prey. PolyGram, for one, is said to be stalking Cinergi as well as New Line Cinema and Castle Rock Entertainment, both of which are rumored to be going on the block in the wake of the Time Warner/Turner merger (just approved by the Federal Trade Commission). And PolyGram, Morgan Creek, and Arnon Milchan's New Regency are also setting their sights on big game: Columbia TriStar. Sooner or later, the industry wisdom goes, its Japanese owners will get tired of bleeding money on flops and put the studio up for sale. Poor Sony has had a particularly vicious experience breaking into the movie business. But hey, as the MGM lion could tell them, Hollywood is a jungle.