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Will MGM be the Amazon ticket to the major Hollywood leagues?

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Jeff Bezos for many years has been searching for himself Game of Thrones – a hit that could allow Amazon’s advertising business to enter the major Hollywood leagues.

“It would not be so difficult,” the economist told his team, according to a recent book by Brad Stone. Amazon Unlimited. Bezos is said to have touted Hollywood’s successes into a key issue: a leading hero, “high-profile civilization”, betrayal, and violence, among others.

At MGM, a film studio behind franchises such as James Bond and Rocks, Bezos probably got what he wanted. But many are skeptical of earning $ 8.45bn with its silver bullet.

The only assets of MGM that are considered as gemstones of the future are James Bond permission, which the company owns with the Wilson / Broccoli family through another vehicle. This means that for any future Bond product, Amazon will rely on the approval of producers Barbara Broccoli and her brother Michael G. Wilson.

“Barbara and Michael are the ones who decide when to make movies. For a long time, hedge fund guys at MGM have tried to convert James Bond in a TV series that can compete Royal Games and the two strongly opposed this, ”said a man who knew Broccoli and Wilson.

“They are very concerned about the franchise. The reason for the whole MGM is that when Barbara and Michael decide to make a Bond movie, they [MGM] be free to earn money and share the movie. But Bond’s real decisions, made, are with Barbara and Michael, “the man said.

© MGM / Eon / Shutterstock

MGM has a rich library of award-winning films, as well as classics such as Those Who Like to Doubt, Good Bad and Evil and Silence For The Lambs, but his acting skills as a film studio are considered to be very high. Currently MGM old names such as, He went with the wind and The Witch of Oz gone, already sold in previous markets.

“It’s not the biggest studio in town,” says Thomas Hughes from Vuulr’s film and television, as well as a former MGM executive. “Does it change the face of Hollywood because MGM is for sale? Not really. Does it change the face of Hollywood because it’s Amazon that does it? Maybe. “

Amazon is pouring money into manufacturing, and I see it as a glue between attracting Prime members and keeping them. Last year, Amazon spent $ 11bn making, acquiring or licensing music and videos for subscribers to Prime, starting at $ 7.8bn in 2019.

Through its Amazon Studios, the company has seen great praise on the list as Unchanged and Amazing Mother Maisel, who won two Golden Globes and five Emmy. Amazon Amazon 2017 Manchester Panyanja became the first to create a search platform to be nominated for the Best Picture Academy Award.

“I think it tells you that he’s interested in what he has,” says Brian Yarbrough, chief executive officer of Edward Jones. But he added: “It’s a well-known business, and you’re always at risk of spending billions and billions on things – and that’s content that people don’t want to see.”

A chart showing the biggest events in the Amazon

MGM has been in the hands of financial analysts since its collapse in 2010. The move is being called for by the largest shareholders, hedge fund Anchorage Capital, which started buying MGM loans in 2010 as part of bankruptcy in the wake of the financial crisis.

“Anchorage and other hedge fund guys who manage MGM will not bring much to the table once it is sold,” said a man who has worked with MGM in the past. “The only good things that have happened over the years have been Agreement and The Story of the Servant list. ”

A co-worker with MGM also added that it might make sense for Amazon to follow the Netflix model, which involves paying a lot more professional money than buying an old studio, which many believe has its best days.

Amazon’s findings are a huge library that gives users a choice. “Amazon teenagers are not stupid. Obviously, the ads may seem strange and expensive but I think they just realized that they needed more for their advertising services and that was what they were willing to pay for, “said someone close to Amazon.” here. “

In general, researchers Morgan Stanley estimates, Amazon will get about 4,000 movies and 17,000 TVs. It will also find Epix TV and MGM HD TV channels – all of the retailers where Amazon is able to make their advertising business, which now costs about $ 20bn a year.

Apple was also in contention to acquire MGM, but was willing to pay $ 6bn, according to two people who spoke on the matter. Comcast, the cable company also considered a business but eventually left, the people added.

“Amazon did their best to get licenses from Sony Photos, which was able to go to Netflix and Disney. And they realized they really needed a promotion, which is why they are buying MGM at an absolutely nutty price tag,” said a banker who did not participate in the deal.

Hulu’s Story of Making a Slave © Hulu

For Amazon, the sale will not hurt the bank and it is important to note that there are very few studios left to be found, according to those inside.

The deal is expected to be a political target as Republican and Democrat lawmakers have repeatedly criticized Amazon for using its power to buy companies and potential future partners.

“This integration is another example of Big Tech’s commitment to governing every aspect of our economy,” he said. in a tweet Republican Secretary Ken Buck, a member of the lower house of parliament on political issues.

But observers are skeptical that developers will do much to protect Amazon. Although it is a major player in ecommerce, it will not be the same in terms of publishing and production, while Amazon will continue to compete with Netflix, Disney and others.

Professor Chris Sagers, a poverty specialist at Cleveland-Marshall College of Law, said: “It would be difficult for the government to oppose the deal. But it’s not because I don’t think the deal can be dangerous. Amazon is in many business, and is using a consortium. let him be strong. ”



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