Chances are that you currently have a subscription to a streaming service, whether it is Netflix or Disney+. The streaming war has been heated, especially during the COVID-19 pandemic when many switched to these platforms. However, Amazon Prime is becoming a major threat to the industry, if you’re not familiar, Amazon Prime Video is Amazon’s streaming service. Yes, I know it feels like Amazon is doing everything these days, but they just want to continue their success. Amazon has continued to compete with the big players, but it’s clear they aren’t contempt with their progress yet.
On Tuesday, Amazon announced that they are close to acquiring MGM Holdings in a 9-billion-dollar deal. Do you remember the roaring lion intro in a movie you’ve watched? If so, that movie was produced by MGM, the private company that has succeeded in Hollywood. This marks Amazon’s second largest acquisition, and a reminder of what companies are doing to inch ahead, especially with AT&T’s deal last week. MGM brings a nice bundle of content, the most known ones being the James Bond series and the Rocky series.
Amazon’s massive streaming push has been noticed, acquiring theatrical releases to exclusively stream on Prime Video, and making a deal with the NFL to stream Thursday Night Football. It shows how diversified the company is, and how ambitious their leadership is. Unless some last-minute decisions occur, the deal is expected to go through for a hefty premium compared to MGM’s valuation in December, which was around 5.5 billion. What do you think about Amazon’s acquisition?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.