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This year’s media deal hasn’t seen the dotcom boom sell for more than $ 232 million, when so far Amazon has reclaimed the $ 9 billion film studio behind MGM, James Bond and Rocky, when it closed.
Hope for the e-commerce giant, which would be the biggest buyer in the media sector, following AT & T’s decision to combine With WarnerMedia Discovery to create a film and television company with business value More than $ 130 billion. The combined team hopes to compete with Disney, Netflix and Amazon in the streaming race.
According to Refinitiv data, the value of the agreements announced so far in the media this year is the highest since 2000 and is 640 percent compared to the same period in 2020.
M&A spree has driven broadcasts, entertainment companies and technology teams to attract subscribers who want to increase content to their streaming services.
Disney, Apple, WarnerMedia, Comcast and Discovery are among the companies that have launched streaming platforms in the last 18 months.
Apple and Comcast have also been competing to buy MGM, which is controlled by Anchorage Capital, a U.S. hedge fund, and a consortium of financial investors, according to reports. Amazon was in the top spot because it was willing to pay $ 3 billion more than its nearest competitor, people added.
“Streaming competitors are using M&A to increase scale and to be better positioned to create and access exclusive containers, which is key to driving subscribers,” said Marco Caggiano, head of JPMorgan’s North American M&A company.
Negotiations in the sector have been driven in part by the failures of telecommunications teams like AT&T and Verizon, which have tried unsuccessfully to build integrated content and distribution powers.
AT&T announced last week that it agreed to buy $ 85.4 billion five years ago to create WarnerMedia — the owner of CNN, HBO and Warner Bros. In February, the telecommunications company sell too DirecTV has a 30 percent stake in the U.S. private equity group TPG, valuing a sick television business at $ 16.25 million – roughly a third of what AT&T paid six years ago.
Verizon reported this this month it was selling The assets of Yahoo and other media outlets were paid $ 5 billion to Apollo Global Management, a U.S. private equity group, since the telecommunications group spent $ 9 billion on active content, including the Huffington Post.
For Amazon, MGM’s deal would be the biggest since Whole Foods made a $ 13.7 billion purchase in 2017, and the latest sign that it’s ready to spend a lot on content for its streaming services. Earlier this year the company signed a deal worth about $ 1 billion a year to play in the NFL, one of the most recent acquisitions of sports rights.
Amazon spent $ 11 billion on content in 2020, up from $ 7.8 billion the previous year as it doubles its efforts to attract and retain new members to the $ 119-a-year Prime membership scheme.
In a recent shareholder letter, CEO Jeff Bezos said there are now more than 200 million first-time members. In a separate file, the company said 175m of them had seen streaming content last year.
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