Amazon is buying MGM in a hugely successful deal, and here’s why MGM sells for more than Marvel and Star Wars combined is not as strange as it sounds. The last two decades have been filled with giant entertainment companies merging into an even larger entity or a giant company being acquired by an even larger one. Just a few of these cases include NBC’s merger with Universal, which was later bought by Comcast; AT&T bought Warner Bros and more recently merged it with Discovery; and, of course, Disney buying up Fox’s movie and television assets.
The ink on Warner Bros. ‘contracts’ The Discovery merger was barely dry when reports surfaced that Amazon was in talks to buy the legendary MGM movie studio, and indeed the massive deal was confirmed just days later. While many would argue that giant media companies gobble up each other is far from a good thing for consumers in the long run, it’s a trend that seems unlikely to go away anytime soon.
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One thing that some fans have noticed is that Amazon bought MGM for a staggering $ 8.45 billion, which is more than the combined price Disney paid to buy arguably its two most important assets today, Marvel and Star Wars. Disney bought Marvel in 2009 for $ 4 billion, then paid another $ 4 billion in 2012 to acquire Lucasfilm, with ownership of Star Wars being the main reason for doing that. The most important thing to remember when comparing Disney’s purchases of Marvel and Lucasfilm to Amazon’s purchase of MGM is the time involved, as well as the amount of assets – it’s not just James Bond that is at the forefront. Amazon can use MGM’s IP library to power various iconic franchises on the big and small screen.
Today, consumers know that Marvel Studios is a hit factory, with each new MCU entry making hundreds of millions, if not billions, in profit. However, it took Marvel Studios a few years to become that kind of box office giant. When Disney bought Marvel, it only Iron Man Y The incredible Hulk they were released, and the latter, while not a true box office bomb, did not meet financial expectations. Additionally, the sale did not include the screen rights to the X-Men and Spider-Man, two of Marvel’s best hitters, which decreased in value at the time.
As far as Lucasfilm is concerned, while the company had many assets, none of the others even remotely compared to Star WarsSo that deal was essentially for Disney to acquire a single franchise, albeit a very profitable one. Although Disney also obtained the rights to make more Indiana Jones movies, Paramount Pictures still retains the distribution rights to the previous four, limiting Disney’s opportunity to make money from that franchise.
Rather, MGM comes complete with a host of iconic IPs, one of which is the James bond franchise, which has made more than $ 7 billion worldwide alone. Then there is the Rocky / Creed franchise, also a multi-billion dollar property. Also part of the sale is the expansion Stargate sci-fi franchise, RoboCop, The silence of the lambs, and even current TV hits like The Handmaid’s Tale Y Fargo. Combine all of those with the absolutely massive general content library that MGM has, and Amazon now owns thousands of titles that you can use to increase the appeal of Amazon Prime, or even license other streaming services if you wish. In order to Amazon, the $ 8.45 billion was a wise investment.
More: What MGM’s Deal Means For Netflix, Hulu, And Disney + Shows Amazon Will Now Own
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