Amazon is trying to grow its capitalist girth by buying Metro-Goldwyn-Mayer, a James Bond movie company. Amazon is considering buying MGM for $9 billion while the governors in the U.S. have started to choose federal unemployment aid to make people undertake low-paying jobs. $9 billion may look like a ridiculous amount of money for all of us, but recently Amazon had spent $11 billion in 2020 for the Amazon Prime platform, so $9 billion is a small amount in front of it. This huge amount of money spent on films, music, and web series is enough to buy these, but not enough to raise the earnings for low-paid, overworking employees.
The company will get an amazing list of movies that will involve the James
Bond movies, The Hobbit franchises, The Silence of The Lambs, RoboCop, The Magnificient Seven, and Rocky and Creed if the deal is finalized. Classics like a recent hit Fargo and The Handmaid’s Tale, reality hits Survivor and The Real Housewives of Beverly Hills, and In the Heat of The Night and the Stargate franchise. This deal would be profitable for Amazon Prime.
The industry sources say that Amazon is into negotiating the deal to purchase MGM for $9 billion. The news that Amazon and other media have been revolving around MGM for quite a while now. But Amazon’s interest in purchasing MGM is not on rumour level. It is huge. Mike Hopkins, a senior of Amazon Studios and Prime Video will organize the deal with MGM board chairman Kevin Ulrich. He is a major shareholder in MGM.
MGM had held a ”for sale” sign already. In December, it was affirmed that MGM was looking for a client. The recent news of MGM and Amazon talks started to roll on this weekend. Amazon was recently in conversations regarding a deal with MGM, that would be nearly between $7 billion and $10 billion. The sources stated that MGM has been muttering for a price of $9 billion to the buyers while the other look at it as $5 billion worth only.
Recently, Amazon has increased its interest in entertainment. The company in the last week has declared that Jeff Blackburn, who is a former high ranking executive, recently left the e-commerce, to get back to Amazon managing a huge and merged media and entertainment field.
At present date, Amazon has over 200 million members in Prime globally, and
175 million people became a part of Prime Video in the last year, stated Jeff Bezos. Apparently, Amazon wants to turn its company into a bigger platform for the customers globally. And to do that, mixing MGM’s library with the Prime Video is the quickest way to do that. MGM owns the world’s massive library of TV content and premium movies.
The MGM library includes 17,000 episodes of programming, like Stargate SG-1,
Stargate Atlantis, Stargate Universe, Fargo, Get Shorty, Vikings, The
Handmaid’s Tale, Fame, Teen wolf, Condor, American Gladiators, and In the Heat of The Night. And some unscripted shows like The Real Housewives of Beverly Hills, The Hills, The Voice, Survivor, and Shark Tank.
Media is a small part of Amazon’s large domain, but it represents a fastgrowing business share. The company had spent $11 billion on movies, music, and TV shows, web series for Prime Services, in 2020. In the first three months of 2021, MGM Holdings recorded an income of $403.3 million that was increased by 27% year over year and the net income of $29.3 million.
Talking to Chairman
The meeting of Amazon’s bid for MGM will be organized by Mike Hopkins, video executive. He is directly interacting with the MGM chairman Kevin Ulrich. MGM is following its origin in the 1920s organization of Marcus Loew’s Metro films with a company that was controlled by the Hollywood legend Louis B. Mayer. MGM floated in the financial crisis by the next half of the 20th century. For decades Time Inc., Ted Turner founder of CNN, and a few times by the late billionaire Kirk Kerkorian owned MGM. There were many considerations before Amazon taking over the entertainment department. Some time back, Amazon was recognised as a buyer of AMC Entertainment Holdings Inc., the movie chain, along with a few investors mixing it with AMC Networks Inc., who was the owner of the cable channels. The investors went through a similar confusion with the information report that showed the increment in MGM Resorts International shares. It is a casino company that is not an element of Metro-Goldwyn-Mayer. The stocks of MGM Resorts bounced by 5.8% in late trading.