This one is actually somewhat true, but it's still a bit garbled in transmission.
Remember that The Disney/MGM Studios was built to be a working movie studio with backlot, stages, costume departments, post production facilties, recording and radio facilties, etc. And for a while there was actually production going on there - everything from weekly syndicated series to game shows to live action motion pictures. But Florida never took off as "Hollywood East" and production has gradually dwindled down to nothing (although Universal Studios still gets some work).
Indications are that Disney is finally abandoning all efforts to make the studio real and will simply be content to make it nothing but a theme park. The last sound stages will be converted into warehouses and/or attraction spaces and the productions department will be used only for theme park support.
It's rather a tragic end on top of the shutting down of Animation. When it opened you could actually see real movies being made by real people - the true Magic of Disney.
P.S. MGM was purchased by a group of investors lead by Sony (who also own Columbia Pictures and Sony Entertainment). For a while it looked like MGM was simply going to be absorbed, but now it looks like MGM will be staying around as an independent company. Chances are good that if Disney wants to reknew the agreement, the "MGM" name can remain.