Amazon’s MGM Buy Details Revealed, Including Library Value – The Hollywood Reporter

How a lot is an iconic movie and TV library that features James Bond, Rocky and Creed, The Silence of the Lambs, Thelma and Louise, Survivor and The Handmaid’s Tale actually value?

According to Amazon, these 4,000 movie titles and 17,000 TV episodes are value about $3.4 billion.

That is what the tech big values MGM’s library of movies and TV reveals at, in keeping with a footnote within the firm’s quarterly report, which was filed with the SEC Friday morning.

The 10-Q is definitely the primary securities submitting to debate Amazon’s buy of MGM in any element, because it declined to take action earlier, saying that the purchase of the storied studio was “not material” to its enterprise.

In reality, the submitting reveals a number of new particulars concerning the buy, which was first introduced final May and closed in March.

While Amazon cited MGM’s huge library of content material to justify the $8.5 billion deal, a lot of the firm’s worth is in $4.9 billion value of “goodwill,” in keeping with the submitting. Goodwill is a catchall finance time period for intangible property acquired as a part of a purchase order. In this case, it’s secure to imagine that MGM’s strong mental property holdings, in addition to its 100 12 months outdated model title, and its present relationships with artistic expertise, are accountable for that valuation.

And the submitting disclosed new particulars on the construction of the deal, particulars of which have been lacking when it was first introduced a 12 months in the past. Amazon paid $6.1 billion in money for MGM, and in addition assumed $2.5 billion in debt, which it repaid after the acquisition closed.

The firm additionally warns that its estimates for the worth of MGM’s library and IP may very well be adjusted sooner or later: “Due to the limited amount of time since the MGM acquisition, the valuation of certain assets and liabilities is preliminary and subject to change.”

In reality, Amazon’s possession of MGM is already starting to be felt. While the long-term technique stays filled with unanswered questions, this week Michael De Luca, the chairman of MGM’s movement image group, and his prime deputy, MGM movement image group president Pam Abdy, introduced that they’d be departing the corporate.

Amazon touted the acquisition in is otherwise-disappointing earnings report Thursday, saying that it’ll “create even more opportunities to deliver quality storytelling to customers.”

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