MGM, one of the pioneer film studios in Hollywood opened itself for sale in November 2020. Now the leading OTT streaming companies is in the race to but it. One of the possible winners is Amazon. Rumor is Amazon is all set to buy MGM in $9 billion. Check out the whole story here.
Amazon to Buy MGM
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In recent years, all the pioneer studios of Hollywood including Disney, Paramount, Universal studios, etc. are adopting the new technologies of the entertainment industry. MGM is all set to follow its path. Unlike the other production houses, MGM does not have any online streaming platform. That’s why MGM had decided to auction itself to leading OTT streamers. And among them, Amazon is likely to acquire MGM by $9 billion.
MGM is majorly known for its James Bond and Rocky franchise. But recently it hasn’t produced any leading films. To keep itself in the market, MGM needed to adapt the latest merger and acquisition system. Initially, in January 2021, MGM had a talk with Netflix and Apple for the merger reasons but it didn’t end up the pricing expectations.
The lockdown condition has boosted the online streaming platforms profit. More than 200 million people are subscribed to Netflix in 2020 and 175 million people to Amazon Prime. Amazon will naturally gain more profit through MGM’s classic movies and MGM itself too can continue to earn more.
MGM aka Metro-Goldwyn-Mayer is a 94-year-old studio. The company has so many classic films on its production list. The Wizards of Oz, Ben-Hur, Gone With The Wind, The Hobbit, The Bond franchise including the upcoming ‘No Time To Die’ featuring Daniel Craig as James Bond- these are the movies which will be bought to premiere in OTT platforms. No Time To Day is possibly to become the highest grosser in 2021. With the 59 years history of Bond movies, this is likely to be MGM’s only weapon to be back in line race.
MGM’s series includes, A Star is Born, Four Weddings and A Funeral, Stargate Universe, The Handmaid’s Tale, etc. have brought billions of fortune to the company making $33 million in profit and $1.5 billion in revenues. The company’s archive has 4000 films and 17,000 hours of TV programming. All these to be bought by the streaming platform possibly Amazon. However, Amazon sets MGM’s price to be between $4 billion to $ 10 billion.
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