MGMB - Amazon' MGM deal: Strategy not economics in focus as giant primes the media pump

Amazon.com's (AMZN +0.3%) $8.45B deal to take over mini-major studio MGM Holdings (MGMB) has "significant strategic benefits" for the increasingly entertainment-focused tech-retail behemoth, Citi says. For a reasonable multiple, the deal ensures that Amazon has "access to high-quality content as more media firms accelerate their direct-to-consumer pivot," analyst Jason Bazinet says. And in the race for scale that has ensued with every major media company jumping into streaming, the transaction “will likely distance Amazon’s Prime service from rivals that will (or do) offer a similar service.” In the aftermath of several streaming launches, Amazon Prime Video, Disney Plus (DIS +0.3%) and perhaps Paramount Plus ([[VIAC]] +1.7%, [[VIACA]] +0.9%) are the rivals arguably seen with enough scale to keep up with leader Netflix (NFLX +0.1%) in the space. MGM Holdings, which owns Hollywood's venerable Metro-Goldwyn-Mayer studio, is privately held by former creditors; it emerged from bankruptcy in 2010. The holding company

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Amazon' MGM deal: Strategy, not economics, in focus as giant primes the media pump