The world of TV and movies continues to evolve as streaming services become more and more important. With major companies like Disney, Comcast and Netflix are all trying to grab as much content as possible.
Following the delay of its flagship title James Bond’s “No Time To Die”, due to the Coronavirus closing cinemas around the world and the overall outlook for movie studios, according to the Wall Street Journal, Metro-Goldwyn-Mayer Studios (MGM) is apparently up for sale and is currently looking for buyers. The studio is currently valued at $5.5 billion, including its debts. There are also reports of private equity firms looking to purchase MGM to take advantage of the demand for content.
MGM has a huge library of back catalogue content, with 4,000 titles such as “Rocky”, “Robocop”, “James Bond” and many more. Plus it has over 17,000 hours of television programming, such as “Fargo”, “The Handmaid’s Tale” and “Vikings.”
This back catalogue is extremely valuable to streaming services. It would instantly be a boost for Netflix, Amazon, Apple, Comcast, WarnerMedia or Disney to gain control over these titles and IP, which will undoubtedly start a bidding war between the companies over this valuable studio.
Disney might be interested in adding more studio capacity to boost Hulu and Disney+; however, the company has spent on acquiring 20th Century Fox and the huge dent in the books for the theme parks, cruise line and box office shut down. Disney might not be the best position to purchase MGM.
The Walt Disney Company has made some major purchases including buying Marvel for $4 billion, Lucasfilm for $4 billion, Pixar for $7.4 billion and $71 billion for 20th Century Fox. So $5 billion for MGM wouldn’t be out of the ordinary.
If Disney was to purchase MGM, it would be a huge boost to both Hulu and Disney+, but is Disney in the right place to take advantage?
Would you like to see Disney purchase MGM?