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Amazon MGM deal will boost streaming assets

Amazon’s likely acquisition of Metro-Goldwyn-Mayer will remove one of the last major independent film studios from the market, which will provide a large flow of cash transactions, which are expected to become a record for media capture in 2021.

Amazon is in talks to buy the James Bond series, the historic Hollywood MGM. According to Amazon, Amazon spent weeks negotiating the acquisition of the studio for about $ 9 billion.

Discussions surfaced the day AT&T announced plans to start a new entertainment company by merging its assets with Discovery, which is valued at about $ 130 billion, including debt. The success of Netflix քային streaming giant Walt Disney Co., which launched its own in-demand video after buying $ 71 billion in assets from 21st Century Fox in 2018, is attracting new competitors to the market.

MGM and Amazon declined to comment on the deal.

According to data compiled by Bloomberg, the achievements create 2021, which will be a record for media transactions. More than $ 80 billion in foreclosures have been announced so far this year, making it the busiest period for the industry since at least 2000, when AOL and Time Warner announced their intention to merge, the data show.

MGM was considered a target for many years, but was never able to close the sale. The company took a new step last year when the Wall Street Journal reported that it was seeking advice from consultants. When concluding a transaction, MGM intends to use streaming services, which has increased the demand for a large number of content blocks.

It also discussed other scenarios involving technical giants. MGM, whose library includes “yawn” and “Lamb Silence” movies, has been in talks with Apple և Netflix to bring its new James Ames Bond movie live stream. But last year the company said it was committed to the theatrical release of the film, which is scheduled for October 8 in the United States.

At the same time, Amazon is re-equipping its entertainment business with the return of longtime CEO FF Blackburn. He briefly left the e-commerce company to join Silicon Valley venture capital company Bessemer Venture Partners. But now it takes over all of Amazon’s entertainment, including Prime Video streaming service, Amazon Studios և video streaming site Twitch.

According to Variety, Amazon’s bid for MGM is led by video executive Mike Hopkins. The publication says that he is dealing directly with the president of MGM Kevin Ulrich.

MGM has its roots in the 1920s with the merger of Marcus Lewy Metro films with Hollywood legend Louis B. With a Mayer-led film company. While performing wonderful paintings such as “Dr. Iv ivago »և« 2001. “Space Odyssey” MGM was pushed in the second half of the 20th century, came out of financial difficulties. For decades, it belonged to Time Inc., CNN founder Ted Turner, and billionaire Kirk Kerkorian, who more than once died.

It is now one of the last major film studios to maintain its independence from larger media groups. Time Warner is now part of AT&T, Disney acquired 21st Century Fox, Paramount is owned by ViacomCBS, and Universal Pictures is controlled by Comcast.

There have been rumors in the past about Amazon acquiring entertainment companies. Formerly considered a potential buyer of the film by AMC Entertainment Holdings, some investors have confused it with AMC Networks, the owner of cable channels.

Investors were subjected to such a mess on Monday. The information report was promoted by MGM Resorts International, a casino company not part of Metro-Goldwyn-Mayer. Shares of MGM Resorts rose 5.8% in the last trading session before falling sharply.

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