Variety is suggesting we shall soon see Amazon buying MGM for $9 billion

It seems like only yesterday (it was) we reported on the prospect of an AT&T / Discovery merger through acquisition, and today it’s (according to Variety) Amazon buying MGM. It’s another combination opportunity (are there many left?) with a world-class portfolio (more later) meeting streaming capability. The Variety article is worth a read, and makes some interesting points such as putting the size of Amazon’s streaming against the overall corporation turnover. They are an online retailer who also does streaming; Disney is a media empire with streaming and a real-world leisure business; Netflix is a streamer. All make content and all need to acquire to consolidate their market position.

What makes MGM attractive?

In their own words, they have the world’s deepest portfolio. Among 4,000 films they have James Bond, Rocky, Robocop and Pink Panther. Their TV back catalogue comprises some 17.000 episodes of shows such as various Stargate titles, Vikings and Handmaid’s Tale. Several of these already stream on Amazon Prime, and it’s clear this extensive collection would be of interest to many players in the market. We understand MGM has been ‘up for sale’ since the end of last year, and we see Disney as still absorbing the Marvel, Star Wars and Star ranges, so have plenty on their plates at present. Netflix seems focussed on global diversity, opening many regional facilities and producing a lot of new content. It’s brand is far less about older titles than Amazon, but we imagine they’ve also considered this acquisition as well.

As ever we’ll keep you up to date with the changes proposed in what continues to be a fascinating time to watch a new market evolve.