Amazon in Negotiations for the Purchase of Metro-Goldwyn-Mayer
The operation, according to the American media, is worth 9 billion dollars, and comes the day after the merger between Warner Media and Discovery
Amazon is in talks to acquire the famous US film studio Metro-Goldwyn-Mayer for about $ 9 billion (€ 7.4 billion). According to some American media, the negotiations have been underway for several weeks and the head of Amazon TV Mike Hopkins and the president of MGM Kevin Ulrich would sit at the table. Metro-Goldwyn-Mayer, whose Anchorage Capital fund represents the largest shareholder, has been looking for a buyer for months. The possible acquisition of MGM would allow Amazon to further strengthen its offer on Prime Video. The film studio has to its credit productions of great importance, including those of the James Bond films.
This would be a further aggregation in the world of world media: in these days the maxi-merger between Warner Media and Discovery has just been announced, an aggregation that will lead to the creation of the second world group in the sector, in terms of turnover of 41 billion dollars against the 65 of Disney. While three years ago he started the AT & race with the purchase, for 85.4 billion dollars, of Time Warner (a merger which, however, did not give the desired results, and in fact it is already returning to a new division between telephony and film and television production, but with strengthening through the joining of forces with Discovery).
These operations, moreover, come at the end of a very difficult period for film studios. MGM was also hit hard by the coronavirus pandemic, and due to the closure of cinemas it was forced to postpone the release of the James Bond film “No Time To Die” four times. Netflix had started negotiations for a streaming release, but the price the studio wanted was considered prohibitive. The theatrical release is now scheduled for September 30 in the UK and October 8 in the US.
Among the main titles in the MGM portfolio, in addition to James Bond, also “Fargo”, “The Handmaid’s Tale”, “The Hobbit”, and for the past “Gone with the Wind” and “The Wizard of Oz”. MGM reported net income of $ 29 million on $ 403 million in revenue in the first quarter. Amazon’s development in the entertainment industry has been underway for some time. Last year, Amazon spent $ 11 billion to create, acquire, or license music and video content for Prime subscribers, well above $ 7.8 billion in 2019. The company has also been busy acquiring the rights. for live sports, including an agreement with the NFL, worth about $ 1 billion a year, to broadcast Thursday Night Football. In a recent letter to shareholders, Bezos announced that Amazon had surpassed 200 million Prime members.