Amazon acquiring MGM Studios in $8.45 billion deal

Posted:
in General Discussion edited June 2021
Amazon hopes to spur its entertainment division with the purchase of MGM, a massive entertainment publisher known for titles like "James Bond" and "Rocky."

Amazon buys MGM
Amazon buys MGM


Amazon Prime Video will be able to bolster its exclusive content package using the large back catalog of MGM. The $8.45 billion deal is its biggest purchase since Whole Foods in 2017.

"The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM's talented team," said Mike Hopkins, senior vice president of Prime Video and Amazon Studios. "It's very exciting and provides so many opportunities for high-quality storytelling."

The content catalog for MGM stretches across 4,000 films and 17,000 TV shows. Much of the content is strewn about other distributors like Hulu, and the deal will likely affect existing licensing. The Fox original series "Fargo" and Hulu's popular "Handmaid's Tale" both belong to the studio.

MGM has published blockbuster titles like:
  • James Bond
  • Rocky
  • Robocop
  • Pink Panther
  • Stargate franchise television
  • Bill and Ted
  • Child's Play
  • Legally Blond
  • Vikings
  • The Girl With The Dragon Tattoo
CNBC reports that the purchase of MGM could ultimately lead to further pressure from antitrust legislators. Amazon seeks to compete more directly with media giants like Netflix and HBO with this acquisition.

MGM has been in acquisition talks with various companies for over a year. Apple had reportedly met with MGM for a potential purchase in January 2020, but no deal was ever reached. Apple also sought to buy content from MGM's movie service, Epix, which never came to fruition.

The deal is subject to customary regulatory approval.

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Comments

  • Reply 1 of 51
    ionicleionicle Posts: 90member
    🤞🤞🤞🤞🤞🤞🤞 more stargate!
    dysamoriamacplusplus
  • Reply 2 of 51
    ravnorodomravnorodom Posts: 509member
    Apple is very picky on contents being shown on their TV+. Purchasing Warner Bros. seems to be the logical move for Apple.
    pulseimagespujones1
  • Reply 3 of 51
    AppleZuluAppleZulu Posts: 1,397member
    If only Amazon would hire some app developers to re-work their video app UI. For years that app has been the digital equivalent of a WalMart bin of bargain DVDs. There's probably good stuff in there you'd like to see, but it's buried in a random pile of poor-quality, out-of-copyright junk, along with d-list content from the 60s, 70s and 80s. Hopefully the purchase of MGM would mean they'll value the asset and upgrade their app to present it (and other content) well, rather than just turning MGM into an underfunded side project.
    notwichredronnpulseimagesStrangeDaysthe1maximusroundaboutnowcarthusiaviclauyyclaytechwatto_cobra
  • Reply 4 of 51
    KBuffettKBuffett Posts: 86member
    Who are the buying MGM from, or is it a standalone entity? Is it listed on the stock market?
  • Reply 5 of 51
    lkrupplkrupp Posts: 10,043member
    AppleZulu said:
    If only Amazon would hire some app developers to re-work their video app UI. For years that app has been the digital equivalent of a WalMart bin of bargain DVDs. There's probably good stuff in there you'd like to see, but it's buried in a random pile of poor-quality, out-of-copyright junk, along with d-list content from the 60s, 70s and 80s. Hopefully the purchase of MGM would mean they'll value the asset and upgrade their app to present it (and other content) well, rather than just turning MGM into an underfunded side project.
    But that ‘content’ makes Apple TV+ a failure because there’s more of it on Amazon Prime. A big catalog is more important than quality programming… or so the argument goes. If not for my grandchildren I would have stopped Disney+ a long time ago. Being born in 1950 I have seen all the Disney stuff in theaters, all the Marvel stuff many times over, all the Pixar movies, etc. 
    pulseimagesharry wildleavingthebiggBeatsviclauyycapplguy
  • Reply 6 of 51
    harry wildharry wild Posts: 797member
    Great for Amazon Prime members, not so for Apple TV+ members! I have been a member of both as will as Netflixes.  I almost never watch anything to completion on Apple TV+.   Movies and TV episode are just to weird of a storyline for my taste on Apple TV+.
    edited May 2021
  • Reply 7 of 51
    harry wildharry wild Posts: 797member
    AppleZulu said:
    If only Amazon would hire some app developers to re-work their video app UI. For years that app has been the digital equivalent of a WalMart bin of bargain DVDs. There's probably good stuff in there you'd like to see, but it's buried in a random pile of poor-quality, out-of-copyright junk, along with d-list content from the 60s, 70s and 80s. Hopefully the purchase of MGM would mean they'll value the asset and upgrade their app to present it (and other content) well, rather than just turning MGM into an underfunded side project.
    I have no problems with the UI.  It is simple and get the job done.  I just use the search function and tap Alexas function to do the search.  
    winstoner71
  • Reply 8 of 51
    avon b7avon b7 Posts: 6,339member
    lkrupp said:
    AppleZulu said:
    If only Amazon would hire some app developers to re-work their video app UI. For years that app has been the digital equivalent of a WalMart bin of bargain DVDs. There's probably good stuff in there you'd like to see, but it's buried in a random pile of poor-quality, out-of-copyright junk, along with d-list content from the 60s, 70s and 80s. Hopefully the purchase of MGM would mean they'll value the asset and upgrade their app to present it (and other content) well, rather than just turning MGM into an underfunded side project.
    But that ‘content’ makes Apple TV+ a failure because there’s more of it on Amazon Prime. A big catalog is more important than quality programming… or so the argument goes. If not for my grandchildren I would have stopped Disney+ a long time ago. Being born in 1950 I have seen all the Disney stuff in theaters, all the Marvel stuff many times over, all the Pixar movies, etc. 
    In reality it's a mix of both.

    Choice is always good and there's no accounting for taste. There are also 'shows of the moment' that may or may not age well.

    If Apple really wanted a foot in the VoD door it should have acquired Netflix long ago.

    A small spread of content, no matter its quality, won't help move things today.

    The silver lining is that if you come up with a hit show like Friends, Stranger Things or X-Files you can reap the rewards, while the less successful content is still in the catalog and potentially serving niches within your subscription base.

    If you are pumping money into production too, you can licence off anything that may not be fitting for your main platform.

    It might take a while for the catalogue to grow and it may not be profitable for a time, but if you have to cash and commitment to keep the business alive...

    For many people, Apple simply isn't offering a big enough spread with a decent mix. That will change over time or they may decide to acquire an established catalogue (and maybe paying through the nose for it).
    muthuk_vanalingamviclauyyc
  • Reply 9 of 51
    sdw2001sdw2001 Posts: 17,895member
    AppleZulu said:
    If only Amazon would hire some app developers to re-work their video app UI. For years that app has been the digital equivalent of a WalMart bin of bargain DVDs. There's probably good stuff in there you'd like to see, but it's buried in a random pile of poor-quality, out-of-copyright junk, along with d-list content from the 60s, 70s and 80s. Hopefully the purchase of MGM would mean they'll value the asset and upgrade their app to present it (and other content) well, rather than just turning MGM into an underfunded side project.
    The UI isn't great.  It's not the worst, but it isn't great.  They've also had some really good content that I don't think is that hard to find (though harder than other services).  

    My biggest peeve about Prime is the lack of a wall between included content and content that must be purchased.  I often look to stream something and see that it's on Prime through my web search results.  Then I click to go to the app, and it's only available for rent or purchase.  With Netflix, HBO, etc...it's either there or not.  Prime is more than video, but perhaps the shipping and media streaming should be separate services.  
    dysamoriaravnorodomwatto_cobra
  • Reply 10 of 51
    This is what Amazon does: big, flashy acquisitions that make it look like they've got some sort of a plan. I remember people thinking that Amazon was going to revolutionize the grocery industry with the Whole Foods purchase and that their prices would be really low...lol. 
    StrangeDaysBeatshcrefugeeroundaboutnowviclauyycwatto_cobra
  • Reply 11 of 51
    schmrtzzzschmrtzzz Posts: 58member
    I got seriously interested in Apple stock when the company considered buying MGM back in 2004. It was interesting because Apple apperently could afford it and because they must have had big plans in offering content, even then. But I bought the stock only after they decided to pass on the deal. Now it wouldn't have been such a bad move. 
    watto_cobra
  • Reply 12 of 51
    dysamoriadysamoria Posts: 3,430member
    sdw2001 said:
    AppleZulu said:
    If only Amazon would hire some app developers to re-work their video app UI. For years that app has been the digital equivalent of a WalMart bin of bargain DVDs. There's probably good stuff in there you'd like to see, but it's buried in a random pile of poor-quality, out-of-copyright junk, along with d-list content from the 60s, 70s and 80s. Hopefully the purchase of MGM would mean they'll value the asset and upgrade their app to present it (and other content) well, rather than just turning MGM into an underfunded side project.
    The UI isn't great.  It's not the worst, but it isn't great.  They've also had some really good content that I don't think is that hard to find (though harder than other services).  

    My biggest peeve about Prime is the lack of a wall between included content and content that must be purchased.  I often look to stream something and see that it's on Prime through my web search results.  Then I click to go to the app, and it's only available for rent or purchase.  With Netflix, HBO, etc...it's either there or not.  Prime is more than video, but perhaps the shipping and media streaming should be separate services.  
    Fully agree with everything above.

    I haven’t had complaints about the UI of the Amazon app on iOS (iPad), except for the organization/categorization, as you said above.

    The Vizio TV app definitely has bad UI design (double press to pause, for starters), but that’s the case with all “smart TV” apps (they’re all sluggish & badly designed garbage), and Amazon’s isn’t even the worst.

    Disney+ isn’t even usable. We were forced to connect my girlfriend’s MacBook Pro to the TV just to use the service at all (mine is too old, apparently, to stream 1080p through a Mini DisplayPort to HDMI without heating up and stuttering). And the Disney+ website repeatedly gets forced to reload in Safari, every 10-20 minutes (on Firefox it doesn’t, but there the movie is streamed in lower resolution!!).
    edited May 2021
  • Reply 13 of 51
    dysamoriadysamoria Posts: 3,430member
    As for this latest round of corporate mergers & acquisitions... Insert my usual commentary here (this isn’t good).
  • Reply 14 of 51
    BeatsBeats Posts: 3,073member
    Not a bad price in my opinion. Apple could have had (NEW) James Bond films exclusively on Apple TV+. That alone would have drove subscribers.

    Apple is very picky on contents being shown on their TV+. Purchasing Warner Bros. seems to be the logical move for Apple.

    “Picky on contents being shown”

    Yes, ORIGINAL content. That’s what makes AppleTV+ different and not “another Netflix”. I called it years ago that Apple would do something innovative in the space(doesn’t take a Nostradamus) and they have. Original content, Spacial Audio and more are coming.

    In 2-5 years Apple’s catalog will be killer and 100% original! Tim says Apple does things for the long run.

    With that said, Apple should still buy old content and license it to 3rd parties or bundle it into a separate service. That would be the smart thing to do. This way they can make money outside AppleTV+ while keeping the allure of original programming. For example, license an old catalog to Netflix so they make money off BOTH AppleTV+ and Netflix. Think of it as a “Beats”.
  • Reply 15 of 51
    DAalsethDAalseth Posts: 2,220member
    Aw man, so many classic films I will now never be able to see. 
  • Reply 16 of 51
    multimediamultimedia Posts: 978member
    Wonder where this leaves Turner Classic Movies?
  • Reply 17 of 51
    Apple should buy Amblin.
    Beats
  • Reply 18 of 51
    jd_in_sbjd_in_sb Posts: 1,600member
    Ted Turner bought MGM decades ago for the same reason: the library. He was/is a visionary. 
  • Reply 19 of 51
    winstoner71winstoner71 Posts: 102member
    AppleZulu said:
    If only Amazon would hire some app developers to re-work their video app UI. For years that app has been the digital equivalent of a WalMart bin of bargain DVDs. There's probably good stuff in there you'd like to see, but it's buried in a random pile of poor-quality, out-of-copyright junk, along with d-list content from the 60s, 70s and 80s. Hopefully the purchase of MGM would mean they'll value the asset and upgrade their app to present it (and other content) well, rather than just turning MGM into an underfunded side project.
    I have no problems with the UI.  It is simple and get the job done.  I just use the search function and tap Alexas function to do the search.  
    100%. Is it the prettiest UI around? No. But like you said, it gets the job done. Some of us don’t need to be spoon-fed every little thing. I enjoy digging into the “crates” so to speak of Prime Video and finding not only the mainstream but the obscure as well. Brings back memories of the ‘80s video store. 
  • Reply 20 of 51
    winstoner71winstoner71 Posts: 102member
    DAalseth said:
    Aw man, so many classic films I will now never be able to see. 
    Um, I think you still have time so don’t talk about it, be about it. Happy watching! 
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