Amazon Closes MGM Acquisition

Amazon completed its $8.45 billion acquisition of MGM, which was permitted after regulators in the U.S. and Europe declined to challenge the deal. MGM and its 4,000 films, 17,000 TV episodes, and sufficient pipeline of future entertainment will join the Prime Video and Amazon Studios family. 🤭

It also means that James BondFargoThe Handmaid’s Tale, and other iconic film and TV franchises will belong to Amazon. What they’ll do about existing arrangements with streaming services or distributors is unknown. However, the sky is the limit. 🌤️

Many of MGM’s thousands of films and TV shows will be added to Prime Video, Amazon’s streaming service which comes as a courtesy with Prime. However, the public has speculated that future MGM Studios and Amazon Studios releases might have day and date releases. In other words — the studios might decide to release films in theaters and streaming services on the same day.

The acquisition also paints a stark reality of consolidation trends in the business of “big media.” Disney‘s controversial acquisition of 21st Century Fox marked the early makings of this consolidation, but AT&T’s decision to spin off WarnerMedia in a merger deal with Discovery underscores the prevalence of the trend. 🚨

Almost all of these acquisitions have a few critical ingredients: the emergence of streaming services, the need for larger content libraries, added scale for film and TV production, and multi-billion dollar M&A activity showing the amount value and IP involved in these transactions.

On the whole, it’s hard to know where this consolidation might go after MGM-Amazon. That being said, it’s easy to know what to expect from Amazon after this acquisition. Amazon is trying to be an “Everything Giant.”

More in   M&A

View All

An M&A-Filled Monday

It was a busy day for dealmaking activity, so let’s quickly review.

Regional banks were buoyed after PacWest Bancorp said it would sell a portfolio of real estate construction loans to shore up its balance sheet. The company will sell 74 loans with an aggregate principal outstanding of $2.6 billion to a unit of Kennedy-Wilson Holdings. It’s also selling them six additional loans with an aggregate balance of around $363 million. While the deal comes at a discount, investors are celebrating PacWest’s steps toward improving its liquidity position. 💵

Read It

Cameco Shares Melt Down On Acquisition News

The world’s largest publicly traded uranium company, Cameco Corp., is falling on news that it’s acquiring Westinghouse Electric Company. However, it won’t be tackling the deal on its own; it’s recruiting the help of Brookfield Renewable Partners. 🤝

Under the $4.5 billion deal terms, they’ll split the cost and ownership almost evenly. Ultimately, Cameco will own 49% of Westinghouse Electric, and Brookfield Renewable will own 51%. And although Cameco has the funds on hand to support the acquisition, it is seeking alternatives to fund the deal to maintain its balance sheet health.

Read It

The Twitter Takeover: Musk’s Next Chapter

Elon Musk, the world’s richest man, held a Twitter poll asking users if they felt Twitter stood for “free speech.” 

Though Musk’s polls are usually fun and games — this poll has become the root of something completely different (and serious.)

Read It

For Musk, It’s “Funding Secured” On Twitter Buyout

An 11-day long fight between the world’s richest person and one of the most beloved social media platforms has come to a close: Elon Musk is buying Twitter

The deal’s terms haven’t changed — Musk will pay $44 billion, that’ll be $54.20/share — to acquire the site. Twitter originally didn’t take Musk’s deal seriously. In fact, the Board even imposed a “poison pill” to prevent Musk from acquiring more than 15% of the company.

Read It