Amazon Eyes MGM for $9B Adhering to AT&T’s WarnerMedia-Discovery Merger

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Right after WarnerMedia and Discovery, will MGM be the next Hollywood domino to drop? Ozge Elif Kizil/Anadolu Company by way of Getty Images

Hollywood is a copycat league in which one successful technique is usually imitated and duplicated in the course of the industry. Just search at all the would-be contenders that sprouted up in the wake of The Avengers who invested yrs and hundreds of thousands and thousands of pounds chasing Marvel in futile tries to create like-minded shared cinematic universes.

More recently, the main pattern has been multi-billion greenback mergers, acquisitions and over-all consolidation of media property. On Monday, AT&T and Discovery Inc. formally announced their intentions to merge WarnerMedia and Discovery. By natural means, this sent Hollywood into a spiral of self-evaluation that really effectively may possibly spark an arms race of kinds.

Amazon is now reportedly in talks to get MGM for about $9 billion, Assortment and The Info report. MGM has extended been positioning itself for a sale with a lot of suitors, including Comcast, Sony and ViacomCBS getting talked about in new yrs. Less than Michael De Luca’s management, MGM emerged as an formidable Hollywood go-getter in 2020. Rumors generally circulate about the company’s long run, even though reports indicate existing talks are considerably much more severe. It was believed the repeated delays of Daniel Craig’s finale James Bond outing, No Time to Die, could have damage the company’s leverage at the negotiating table. But primarily based on reports, it’s comprehensive steam ahead at the moment.

Fellow tech giant Apple has constantly been a well-known likely landing spot because of to the company’s huge coffers and will need for a stronger library. In the meantime, Amazon has often appeared written content to be fifty percent in and 50 percent out on its streaming endeavors, content to shell out $8.5 billion on once-a-year on-display content while also hardly ever bothering to update its lackluster UI/UX. But underneath studio head Jennifer Salke, the entertainment division has taken on new great importance at the corporation as they pivot from area of interest status fare to more wide appeal style property operate swings. Amazon lately introduced that its Key bundle experienced surpassed 200 million worldwide subscribers with 175 million of these buyers sampling Prime Video clip about the last calendar year.

MGM Studios experienced reportedly been searching for $10 billion earlier, even though Variety notes that some feel the studio is worthy of $5 billion. MGM’s 4,000 film library include things like the vaunted James Bond series, the Rocky and Creed franchises, RoboCop and The Pink Panther movies. There is also notable one-off films these as The Silence of the LambsFour Weddings and a Funeral and The Magnificent Seven. MGM is also a player on the smaller screen with 17,000 episodes of Tv set in its library including status scripted fare these kinds of as The Handmaid’s Tale and Fargo as well as common truth Television series this kind of as The VoiceSurvivorShark Tank and The Genuine Housewives of Beverly Hills.

Should a offer materialize, it will be nevertheless an additional in a deluge of important moves Hollywood has seen in current a long time:

  • AT&T acquires Time Warner ($85 billion)
  • Disney acquires Fox ($71 billion)
  • WarnerMedia merges with Discovery ($43 billion)
  • Comcast acquires Sky ($39 billion)
  • Viacom and CBS merge ($12 billion)
  • Discovery acquires Scripps Networks ($12 billion)
  • Sinclair acquires Fox Sporting activities Networks ($10 billion)
  • Lionsgate acquires Starz ($4.4 billion)
  • Wanda acquires Legendary ($3.5 billion)
  • Sony acquires Crunchyroll ($1.2 billion)

The avalanche of strategic positioning and pouncing has left Hollywood observers curious as to what will come next. It is achievable that Paramount+ is basically a flashy stock-boosting device to superior put together ViacomCBS for an eventual sale. Peacock’s start has not been as successful as hoped, so Comcast—which was also reportedly intrigued in WarnerMedia—could either be a buyer or a seller when it will come to NBCUniversal. Lionsgate is a opportunity acquisition target as is AMC Networks.

The fast long run of the entertainment media industry is as unclear as the long run of 007. But we can say extra mega-mergers and billion dollar acquisitions are likely on the horizon.

Consolidation Continues as Amazon Reportedly Eyes MGM for $9 Billion