Second largest takeover
The acquisition of U.S. film studios Metro Goldwyn Mayer (MGM) is the second most expensive acquisition in the history of online retailer Amazon. The last takeover was that of the Whole Foods grocery chain for more than 13 billion US dollars in 2013. With the takeover of the film studios, the online retailer is now able to increase its streaming offering considerably. Amazon is paying quite a bit for the takeover, which will cost $8.45 billion, or about 7 billion euros. This will give Amazon an extensive catalog of series and movies.
For the takeover to be signed and sealed, only the supervisory authority has to give its approval. MGM was founded in 1924 and is one of the “Big Five” companies that influenced Hollywood’s “golden era”. Among the comprehensive catalog that Amazon is acquiring with the purchase are around 17,000 series and around 4,000 films. The online retailer is targeting this catalog of rights, which will allow it to add popular films like “007” and others to its lineup. Mike Hopkins, head of the streaming service and responsible for film production, says of the deal: “The real value of this deal lies in the immeasurable treasure of rights in this extensive catalog.” The deal is also said to include allowing MGM to continue working on film production.
Generous takeover offer
On the other hand, there is surprise about the amount of the takeover price. According to U.S. trade media, the value of the studios is probably closer to $5 billion to $6 billion. Even if the attractive James Bond bundle is included, this is nevertheless provided with a mortgage. For example, the production company Eon has a say in pretty much every decision here. This probably means that the popular James Bond films will not be exclusive to Amazon for the time being.
Other interested parties
It has already been known for several months that MGM is a takeover candidate. Not only Amazon, but also Netflix and Apple were interested in a possible takeover of the film studio. That it will now in the end the online retailer, was already known on Tuesday. With this takeover and also the planned merger of Discovery and WarnerMedia, there is now real movement in the entertainment industry and new competitors are emerging.