- Amazon’s deal to acquire MGM for $8.45 billion closed this week and set the stage for the future of streaming to become even more of interest to investors.
- At its core, the deal makes sense and could be mutually beneficial to both companies and their shareholders, a stark difference from the AT&T/Time Warner deal fraught with problems.
- To Amazon, streaming is ONE component in the grand scheme – they aren’t trying to just beat Netflix, it is much more important to them to diversify their portfolio.
- To MGM, Amazon is a lifeline that will help them continue to operate at a higher level while taking away some of the pitfalls they’ve encountered in this new normal.
- Rumors about a streamer buying a studio have always been around, the problem was they were all absurd. Here Amazon picked a complementary partner, which gives them a built-in advantage.
For further details see:
Amazon's MGM Deal Sets Them Up To Succeed Where Others Failed