Buy Amazon MGM Studios for $ 8.45 billion During the Broadcasting War
Amazon.com Inc said on Wednesday it bought MGM, a famous US movie studio on the James Bond franchise, for $ 8.45 billion, gave it a massive library of movies and TV shows, and increased competition with broadcast rivals led by -Netflix and Disney +.
This agreement is designed to help Amazon pay more for its Amazon Prime Video service by keeping customers engaged and paying annual subscriptions that ensure faster delivery of its online store.
Amazon’s Prime Video faces a long list of competitors, including Netflix Inc, Walt Disney Co’s Disney +, HBO Max, and Apple Inc Apple Apple +. In addition, companies are increasing spending and expanding global markets, to gain a pandemic-led change in the most online watch shows.
Amazon also made a significant bet on the popularity of live sports fans and seized paid licenses to broadcast games, including a long-term deal with the National Football League that was thought to cost around $ 1 billion a year.
Increasingly broadcasting services are also looking for expanding products and libraries for older programs and movies. Analysts say this is a great incentive for some media outlets after a brief hiatus during the epidemic.
To emphasize this trend, AT&T Inc. announced a $ 43-billion deal last week to end its WarnerMedia business and merge it with Discovery Inc, one of the most prominent positions in the broadcast era.
“Amazon should play a major role in entertainment, and there is no better way to do that than to find one of Hollywood’s most popular movie theaters,” said Jesse Cohen, senior analyst at Investing.com.
The price represents the highest premium in respect of other deals. The price is almost 37 MGM’s 2021 estimated at EBITDA – or nearly three times the business value – at EBITDA most often when the acquisition agreement refers to AT&T’s content assets – according to Reuters Breaking views. MGM began a formal marketing process in December, when it was estimated to cost about $ 5.5 billion.
Money Laundering Rights
Amazon has won Academy Awards over the years and has shifted slightly from the cost of the art gallery to more engaging content. According to MGM, the acquisition of MGM has accelerated that move, granting us rights to James Bond, one of the most lucrative franchises in film history that have earned nearly $ 7 billion out of the box office.
MGM also has an extensive library of classic films, including “Rocky,” “Moonstruck,” and “Peace of the Lambs.” The power to dig up this base, by making new shows and films based on famous characters, will help Amazon attract viewers to the Prime Minister, two Amazon executives told Reuters.
However, Amazon’s efforts to profit from the MGM library will not be easy, or cheap. In many cases, MGM content is linked to long-term contracts with television networks, former Amazon executives say. As a result, Amazon cannot show the actual MGM show “Voice,” for example, which is a deal in the hands of NBC.
Bringing a new installment of the James Bond saga to the Prime Minister’s audience could be a daunting task, sources said. Circumstances in which MGM acquired the right to control the right to enter into the hands of the Broccoli family, Bond filmmakers.
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