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Is Amazon buying James Bond?

18.5.2021

Translation: Eva Francis

Amazon is said to be close to acquiring «James Bond» movie studio MGM, as industry insiders report. That would be a groundbreaking investment in their own streaming capital.

Nothing has been confirmed yet. Yet, well-informed insider sources have told industry magazine Variety that Amazon is apparently weeks into negotiations on a deal to acquire James Bond film studio Metro-Goldwyn-Mayer, or MGM. Yes, that’s the one with the roaring lion.

The alleged price tag? 9 billion US dollars.

It’s been all over town for a while

It’s no news that MGM Studios is for sale. In fact, the Wall Street Journal reported on this last December. According to this report, MGM is said to have teamed up with investment banks Morgan Stanley and LionTree LLC. That’s a clear message that reads: «We’re for sale.» MGM was estimated to be worth about 5.5 billion dollars at the time. Since then, interested companies have been circling their prey like hungry lions.

And Amazon is expected to strike soon.

The trade magazine The Information, which estimated that MGM insisted on a purchase price of about 7 to 10 billion dollars even before Variety’s report was released, is taking the same line. After all, as they report, the company would offer potential buyers an extensive portfolio – about 4,000 films and 17,000 hours of TV, according to The Guardian.

The cinema and streaming world is moving

The news of a possible acquisition of MGM by Amazon is unlikely to be a coincidence. After all, the decided merging of the median house WarnerMedia and Discovery is to be completed no later than 2022. Combined, the newly formed company, which would then include the Warner Bros. film studio and the Discovery Channel Group, would boast more than 40 billion dollars in annual revenues. While that’s not quite as much as Disney with 65 billion dollars last year, it’s more than Netflix with 25 billion dollars in the same period.

The people in charge at WarnerMedia and Discovery are obviously interested in catching up with the big players. Especially in the streaming sector. The fact that this doesn't seem to work with HBO Max and Discovery+ alone makes us sit up and take notice. So does the fact that the planned merger will create a new big player in the market.

That's exactly what could annoy Amazon and its Prime Video streaming service. The US giant currently has 200 million Prime subscribers worldwide. That’s more than the 100 million subscribers Disney+ has accumulated in a single year, but less than the 208 million subscribers market leader Netflix has to its name. And now another big player is about to enter the race.

What’s for sure is that buying MGM would help Amazon face the threat of its streaming competition. The question is whether Apple TV+ will just shrug its shoulders and settle with its good, but relatively small streaming portfolio or show some sign of life, at last.

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What does MGM have to offer?

Why is Amazon interested in MGM in the first place? Let’s take a look at some major titles it owns and you’ll see why. MGM's biggest gem is «James Bond». Ironically, last October, there was still speculation about whether Netflix or Amazon Prime Video might be interested in the exclusive distribution rights to the James Bond film «No Time to Die», which still hasn’t been released. In the event of a takeover, nothing should stand in the way of a James Bond date-and-day release, as Disney has already done with «Mulan» and «Raya».

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However, MGM has more to offer than just «James Bond». The company also owns the «Hobbit», «Rocky», «Creed», «RoboCop» and «Pink Panther» franchises as well as film classics such as «The Silence of the Lambs», «The Magnificent Seven» and «Four Weddings and a Funeral» and the series

«Stargate SG-1», «Stargate Atlantis», «Vikings», «Fargo», «The Handmaid’s Tale», «Condor» and «Fame». That wouldn’t be a bad, 9 billion dollars catch for Amazon. Roar!

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Luca Fontana

Senior Editor

Luca.Fontana@digitecgalaxus.ch

I write about technology as if it were cinema, and about films as if they were real life. Between bits and blockbusters, I’m after stories that move people, not just generate clicks. And yes – sometimes I listen to film scores louder than I probably should.

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