MGM Officially Names Yemenidjian as CEO

Metro-Goldwyn-Mayer Inc. said that it named Alex Yemenidjian, who is majority owner Kirk Kerkorian’s right-hand man, chairman and chief executive.

Yemenidjian, 43, a senior executive at Kerkorian’s Tracinda Corp., succeeds Frank Mancuso, 65, who stepped down but will continue as a director. Vice Chairman A. Robert Pisano, 56, who joined MGM with Mancuso in 1993, also resigned from his job and from the board of the Santa Monica-based company.

MGM on Tuesday reported its first-quarter loss from operations quadrupled to $81.6 million, or 54 cents a share. The studio released a string of disappointing movies over the last year, including “Dirty Work” and “The Mod Squad,” and hasn’t had a profit since 1998. One analyst said Mancuso had become frustrated.

“This is partly a generational change,” said J.P. Morgan analyst Matthew J. Harrigan.

One of Yeminidjian’s top tasks will be to reduce the studio’s losses, which are expected to be more than $100 million this year, he said.

The company also said it will have a rights offering to raise about $500 million in equity to fund the production of more films and television shows.

The offering will let all MGM shareholders buy new shares at a discount to market prices. A company owned by Tracinda would buy any shares not subscribed.

MGM shares sank $1.63 to close at $14.19 on the New York Stock Exchange.