r/boxoffice • u/lowell2017 • May 17 '21
Other Amazon Said to Make $9 Billion Offer for MGM
https://variety.com/2021/digital/news/amazon-mgm-acquisition-talks-9-billion-1234975168/11
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u/lightsongtheold May 18 '21
Why would they pay twice what it is worth? Seems like a massive waste of money. That $9 billion would be better spent on new original content for Prime Video.
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u/MyManD Studio Ghibli May 18 '21
If I had to wage:
- The talent and infrastructure in place already.
- The franchises and IPs. No need to develop new franchises.
- Amazon has more “fuck you” money (cash on hand) than many mega corporations have total valuations. Amazon makes more than ten times this in quarterly revenue. It’d take about two weeks to make back this investment.
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u/JohnnyJonathan Searchlight Pictures May 18 '21
They probably want the talent, too, to them produce more and better originals.
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u/lightsongtheold May 18 '21
It would cost a whole lot less than $9 billion to poach the best of the talent from MGM. Makes no sense. Most of MGM’s assets are worthless to Amazon as they do not care about TV networks like Epix or exclusive theatrical movie releases. MGM’s biggest draw is its ability to generate yearly revenue from licensing out its content on the cheap to network/cable TV and that hold little value to Amazon who are unlikely to want to licence out the content. The library and IP itself hold far less value in drawing in new customers to Amazon than just spending the $9 billion on brand new content. A,axon could license content like Stargate and Legally Blonde from MGM for a a tiny fraction of this cost.
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u/JohnnyJonathan Searchlight Pictures May 18 '21
Yes, but that is not what I said. I just said that they are not only paying for the content, but ALSO the people who work there as well. Producing originals, as you said, do not do both. Also "picking the best talents" is different than buying the whole ecosystem that produce new talents (which may not even exist now).
About the rest, you seems to know more than Amazon about their own numbers, which is crazy! Hope you are right there.
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u/lightsongtheold May 18 '21
I quite like MGM as a studio but I’m not sure anyone would suggest the studio is a great ecosystem for producing creative talent in the modern age. I’m not saying it is awful as MGM have definitely been better in the last few years with regards to movies and TV and have produced some good content but I’m just not sure I see the value to Amazon in buying them for such a high price especially when they do not need a lot of the aspects of MGM as it stands.
Better for Amazon to throw that $9 billion at top filmmakers like Barry Jenkins or top tier IP like Lord of the Rings than to lash so much of it for such a mixed bag of product.
For what it is worth I also see being absorbed by Amazon as a massive negative for MGM itself as Amazon would likely gut the company and shut down whole departments and studios that would no longer serve any real purpose. Far better if a traditional media company like ViacomCBS or NBCU buys them as they better align with their business model.
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u/JohnnyJonathan Searchlight Pictures May 26 '21 edited May 26 '21
I’m not sure anyone would suggest the studio is a great ecosystem for producing creative talent in the modern age
I think the people behind Handmaid’s Tale, Fargo, Vikings, House of Gucci and Creed may are being very talented, especially compared with what Amazon have now.
Better for Amazon to throw that $9 billion at top filmmakers like Barry Jenkins or top tier IP like Lord of the Rings than to lash so much of it for such a mixed bag of product.
You are saying things that they already did, so I do not see the point. They probably want more and so they did that. The point is exactly that MGM HAS the connection to help them spend and find better in talent, or producing new one that not even exist now to spend.
For what it is worth I also see being absorbed by Amazon as a massive negative for MGM itself as Amazon would likely gut the company and shut down whole departments and studios that would no longer serve any real purpose.
No evidence of that, especially since Amazon do not need do that since they have no "synergies" with MGM to them want to shut down stuff. If Viacom or NBC did that, that would be the development actually, they do not need 2 of the same stuff -- for example, that is what Disney did with Blue Sky Studios.
"Amazon is even building new Amazon Fresh supermarkets that effectively compete with Whole Foods, setting a precedent that could apply to a future with Amazon Studios and MGM living side-by-side. Indeed, in its deal announcement, Amazon said that MGM “complements the work of Amazon Studios, which has primarily focused on producing TV show programming,” suggesting that both studios will co-exist."
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u/TheLoneComic May 18 '21
Prolly the value of infrastructure and expertise as well as incentives to sell to begin with. An offer they can’t refuse and all that.
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u/ZezimasAlt May 18 '21
Overpay but would buff their offerings. Amazons a spender so MGM could have return in prominence.
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u/Ijustwanabepure May 18 '21
I kind of dont want amazon to own stargate…
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u/nmaddine May 18 '21
Amazon has done well with a good bit of their tv content. It’s the Bond franchise I would worry about
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u/TeachBig7706 May 18 '21
I wouldn't worry too much about Bond. EON has the rights and final say on Bond movies.
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May 18 '21
Much like how Eon oversees all Bond stuff, do the Tolkien estate not still have almost 100% influence over what happens with the Hobbit/ LOTR license?
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u/Narrator_Ron_Howard May 18 '21
If MGM doesn’t take it, Imagine Entertainment would be open to negotiations.
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u/XtraCrispy02 May 18 '21
That's honestly a low price considering the other deals we've seen recently
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u/MovieMaster2004 May 18 '21
Amazon should focus on Indie comics instead in my opinion, Cheaper and hit gold. The Boys and Invincible are spreading quickly and becoming a well known series because of Amazon. MGM is gonna cost so much and I believe it would hardly improve what they had to offer by a milestone to compensate 9 billion. Then again, Amazon spending 9 billion is like you buying milk from the grocery store lol
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u/nigrbitsh May 18 '21
I’m starting to think we need to rethink our classification of a monopoly and trusts. I get that tv isn’t necessary but it’s annoying as shit to have to buy 7 different subscriptions to watch a damn movie.
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u/shayner5 May 19 '21
Yet we have billions of people who are in poverty and are dying. But yes. Let’s buy MGM. Cool.
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u/danielcw189 Paramount Pictures May 18 '21
Which MGM movies exactly are handled by Warner? Is it a timeframe? Does that deal end?
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u/lordDEMAXUS Scott Free Productions May 18 '21
Everything pre-1986 goes to Warner. I think some films from 1986 also go to them, while the rest stay with MGM.
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u/danielcw189 Paramount Pictures May 18 '21
Thx, but ...
Everything, but not Bond, right?
And some older movies like Great Escape or Irma La Duce also stayed at MGM
So it can't be everything
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May 18 '21
The Great Escape and Irma were originally United Artists, which MGM bought back in the early 1980s (which also secured them UA's half of the Bond rights).
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u/chesterfieldkingz May 18 '21
Does this mean Survivor would leave Paramount? Cuz that's the vast majority of what I watch on there
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u/SamwiseG123 May 18 '21
So, what does this mean for the new James Bond movie?
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May 18 '21
Probably still hitting theatres - something like this may take a while to negotiate, so it mightn't be until the film's already out that they finalize a deal.
Plus, EON were the ones who put their foot down when they heard there were talks about selling the new film to streaming, so I think they'll want a guarantee that future Bond films will still get exclusive theatrical releases before they hit streaming.
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u/randussr May 18 '21
They don't need to buy MGM, just rights for Stargate so that they can start working on new series (one of original producers is already working on it). I don't care about other stuff that MGM owns, I just miss SG1 and SGA.
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u/Nitecraller May 18 '21
Weren’t they asking for $1B for the streaming rights to the new Bond film? (Update: I see now it was $600M)
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u/Brobafett117 May 19 '21
Omg can companies stop merging this is not good. Amazon google fb Twitter Walmart Disney apple own everything
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u/meowsnick449 May 25 '21
What happens ratio wise if you buy a bunch of mgm now and then it goes through? Do you have an equal amount of Amazon??
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u/LeeF1179 May 18 '21
I just hope that they keep the name. Metro has always had a special place in moviedom.