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Amazon today announced it has reached an agreement with MGM to acquire the entertainment company for $8.45 billion, following a report last year that claimed MGM had reached out to Apple to gauge interest in a potential acquisition.

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The acquisition of MGM will likely bolster Amazon Prime Video's catalog of movies and TV shows amid increasing competition from the likes of Netflix, Disney+, and Apple TV+. Amazon said it will help preserve MGM's heritage and catalog of films, and provide customers with greater access to these existing works, such as the James Bond franchise.

Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios:
MGM has a vast catalog with more than 4,000 films—12 Angry Men, Basic Instinct, Creed, James Bond, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and many other icons—as well as 17,000 TV shows—including Fargo, The Handmaid's Tale, and Vikings—that have collectively won more than 180 Academy Awards and 100 Emmys. 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. It's very exciting and provides so many opportunities for high-quality storytelling.
The acquisition is subject to regulatory approvals and other customary closing conditions.

Apple continues to expand its slate of TV+ programming, including "The Me You Can't See," a mental health docuseries from Oprah Winfrey and Prince Harry that debuted May 21. A follow up to that series is coming May 28.

Article Link: Amazon to Acquire MGM for $8.45 Billion Amid Competition With the Likes of Netflix and Apple TV+
 

Orange Bat

macrumors member
Mar 21, 2021
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I’m not sure I’d call Apple TV+ real competition for the others at this point. Apple should have made this purchase, or try and make one like it (Sony still might be willing to sell — but at a premium. WarnerMedia looks to be back on the market and its been reported that the point of the Discovery merger is to make WarnerMedia attractive for a sale). Apple is not a true major player in streaming and has nothing on services like Disney+, Netflix, Amazon Prime, or even HBO Max.
 

Expos of 1969

Contributor
Aug 25, 2013
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Spending 9b to make or acquire new content is money better spent. Apple can make close to 200 new movies/docs etc at 50m a pop for each as opposed to basically MGM “old stuff” that unfortunately younger and younger generations could care less and less about
Sure Apple could. But based on their current track, the vast majority of the close to 200 movies and or docs would not be very popular.
 

sblemmy

macrumors regular
Oct 24, 2013
125
373
I find Apple's TV strategy quite baffling. I know they're doubling down on original content, but, frankly, companies need a back catalog AND new content to be competitive in the streaming space. They're already years behind Netflix, Disney+, HBO Max.
 

BaltimoreMediaBlog

macrumors 65816
Jul 30, 2015
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I don’t think Amazon needs them to compete with Apple TV+ 😂

You got that right. Apple TV+ is already a joke. I don't even know anyone who knows what it is. They have no major catalog of content that anyone knows about.

But in general, I can't wait to see Jack Dorsey, Mark Zuckerberg, and Jeff Bezos squeal like stuck pigs when Big Tech is broken up and half of their toys are forced to be shared with the other kids in the school yard. :D
 

Canyda

macrumors 6502
Sep 7, 2020
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I read somewhere else that this catalogue also includes the Survivor TV series. Insert "Survivor: Amazon" joke here. :D
 
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Rogifan

macrumors Core
Nov 14, 2011
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I find Apple's TV strategy quite baffling. I know they're doubling down on original content, but, frankly, companies need a back catalog AND new content to be competitive in the streaming space. They're already years behind Netflix, Disney+, HBO Max.
I suppose Apple could go after Viacom. It has CBS and Paramount. Though Apple would probably have to spin off Simon & Schuster.
 

groundedUX

macrumors member
Aug 24, 2018
49
94
Unless I’m missing something, this kinda feels like a steal? The Bond franchise alone has brought in over $10B or so I think. Imagine branching out and further developing some of the better known franchises in this catalog (like Star Wars has done) AND having a full catalog to supplement Prime Video immediately.
 

Unregistered 4U

macrumors 68040
Jul 22, 2002
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I’m not sure I’d call Apple TV+ real competition for the others at this point. Apple should have made this purchase, or try and make one like it (Sony still might be willing to sell — but at a premium. WarnerMedia looks to be back on the market and its been reported that the point of the Discovery merger is to make WarnerMedia attractive for a sale). Apple is not a true major player in streaming and has nothing on services like Disney+, Netflix, Amazon Prime, or even HBO Max.
Yeah, it’s like mentioning Apple Arcade in the same sentence with “any other game streaming service” just because they both have something to do with games.
 

roncron

macrumors 6502a
Aug 15, 2011
761
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Mergers and acquisitions create economies of scale and economies of scope. If markets are competitive, those cost savings will be partly shared with consumers in the form of lower prices or an improvement in the quality of products and services without a corresponding increase in price.

But when markets are dominated by a few very large firms, the gains go mainly to the firm's shareholders, and market efficiency takes a hit. Plus, when very large firms get even larger, they have more impact on policymaking, which they use to entrench and expand their market dominance.

That's why antitrust laws were created, and this MGM acquisition has antitrust issues that will need to be worked through before the deal is approved.
 
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Orange Bat

macrumors member
Mar 21, 2021
90
261
Unless I’m missing something, this kinda feels like a steal? The Bond franchise alone has brought in over $10B or so I think. Imagine branching out and further developing some of the better known franchises in this catalog (like Star Wars has done) AND having a full catalog to supplement Prime Video immediately.
While James Bond is still a big name, I‘m not sure it will be the same going forward. I’m a Bond fan and I think the latest incarnation of Bond on screen has been pretty mediocre. CASINO ROYALE was an instant classic, but all the other Daniel Craig outings are pretty forgettable, IMO. (I know some people like SKYFALL, but I think it was merely an OK entry for Bond) I really think Bond needs a major overhaul to stay relevant and connect with younger viewers moving forward.
 

redfirebird08

macrumors 6502
Feb 15, 2007
457
157
Spending 9b to make or acquire new content is money better spent. Apple can make close to 200 new movies/docs etc at 50m a pop for each as opposed to basically MGM “old stuff” that unfortunately younger and younger generations could care less and less about

Thing is Amazon did not even really acquire the "old stuff" that made MGM great in the first place. Films like Wizard of Oz and Gone With The Wind from the glory days of MGM are owned by Warner Brothers thanks to its ownership of the Ted Turner library.
 
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