We all know that Jeff Bezos is a smart and determined individual…
Building Amazon (AMZN) up from an online book-seller to one of the biggest sellers of goods on the entire world – took a lot of work and sacrifice – but seeing as he’s one of the world’s richest men…
All of that hard work has paid off.
Bezos is ready to move on from his position at Amazon – as he will be giving up his CEO seat during the 3rd quarter of this year…
However, he hasn’t given up the throne yet – and it seems like he’s got one more mountain he wants to climb first before relinquishing the crown.
The rumor mills are swirling in two places as we speak – Wall Street and Hollywood – because if Bezos’ next move goes off…
It could change both places forever.
Can you guess what may be coming next for Amazon?
If that wasn’t a big enough hint – then I don’t know what to tell you…
If you didn’t extrapolate that Bezos is looking to get Amazon (AMZN) entrenched in Tinsel Town by becoming a BIG part of the Hollywood machine – and there only seems to be TWO ways you can do that:
You can either start your own studio…
Or you can buy one.
Of course, it’s a whole lot easier to buy one that’s always up and running – it’s just going to cost you a LOT more money.
Well, money is definitely something Amazon has a vast supply of – and so it seems that Bezos’ baby is about to make an offer for one of the most storied and historical studios in town.
According to said rumor mills, Amazon is in talks to buy MGM Studios – yes, the studio with the roaring lion logo that we’ve seen for the better part of a century – for as much as knee-bending $10 billion.
If the deal goes through, it will put Amazon in the driver’s seat of some of Hollywood’s BIGGEST franchises – from James Bond and Rocky – to Robocop and Shark Tank.
This move would automatically make Amazon one of the BIGGEST players in entertainment – as its Prime studios has its own set of franchises that have become some of the biggest in modern times – such as The Boys and the Marvelous Mrs. Maisel.
Investors reaction to this news seems to be a big fat “meh” – as the stock didn’t gain much on the rumors (about 1%) – but this may be because they either don’t believe the rumors…
Or simply don’t understand how big this could truly be.
Right now, there are only about three minor content creators left: MGM Studios, Lions Gate/Stars (LGF.A) and AMC Networks (AMC).
It’s funny that these three giants of Hollywood are now considered “minor” content creators – but with the amount of content being put out by Disney and Netflix alone – it’s like these stalwarts of Tinsel Town past are barely a factor in today’s entertainment world.
These last few vestiges of the Golden Age of Hollywood are all that’s left…
And it’s time that they became a part of the 21st Century entertainment model – and Amazon could be a way to bring MGM’s content EXCLUSIVELY to its Prime channel…
As well as get their hands on some of the biggest franchises in the history of entertainment.
Again, it’s not a done deal. MGM can be a fickle mistress … just ask Apple (AAPL), as Steve Job’s brainchild tried to finesse them into selling their content last year…
But that deal never came through.
One thing’s for certain – if the deal with Amazon happens, MGM is in good hands…
As Bezos and company know how to monetize content better than most – which makes this acquisition such a big deal for Amazon and the streaming industry as a whole.
Why?
Because once MGM is off the table, that leaves just Lions Gate and AMC Network as the lone soldiers trying to hold back the tide of the streaming tsunami…
And while both have excellent content and are just begging to be snapped up by any one of the giant content streamers out there today – odds are they’ll fall as well.
To which company though – that’s the big question.
It’s too bad AMC didn’t see the writing on the wall a bit earlier…
It could have been at the forefront of the streaming industry with its long list of original hit programs like Mad Men, The Walking Dead and Breaking bad.
Regardless, this acquisition (should it happen) would be HUGE for Amazon and would put the rest of the streaming industry on notice…
Now, we just watch and wait.
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Either way, keep your eye on this potential deal between Amazon and MGM…
It could be HUGE!
“Your margin is my opportunity.” – Jeff Bezos