@robbybedfart:
Because they're like 4 billion dollars in debt. Yes, with a b.
They can't get the next Bond film off the ground either.
If you can't afford to make a guaranteed franchise moneymaker like the Hobbit or Bond… there's a problem.
Keep in mind that they only have international distribution rights to The Hobbit while Warner Brothers owns the local distribution and production rights through New Line. Worst comes to worst and they have to have immediate cash, they can sell the international distribution rights back to Warner Brothers. If anything, they're probably going to try to extort as much money as possible out of them for those rights.
@CosmicDebris:
How the heck did they get that far in debt? Do they have politicians in their finance department?
This seems to happen to MGM every twenty to thirty years or so. In the late '60s, they nearly floundered after a decade of either major hits or massive flops (they tended to make massive films that would either earn more money than every other film they made combined or would lose more money than the rest of their lineup could make), but were saved by a real estate developer who turned their massive studio backlot 3 into condos and who sold most of the props at auction.
In '86, they were bought by Ted Turner, who quickly sold them again, but who kept their film, television, and animation libraries. That's at least part of what is killing them now. Most studios can make some quick cash by releasing their old material on DVD or even selling it off to another group, but MGM can't do that for the most part as the bullk of their most high profile products (The Wizard of Oz and their animation) along belong to Time Warner.
Far as I can tell, right now their problem is that their only real major assets are James Bond and the distribution rights to The Hobbit. Besides the two Bon films, I can't really think of any successful films that they've made over the past few years.