TikTok’s $4 Billion Advertising Machine Is Messy Behind the ScenesRead More

Amazon logo in Santa Monica and MGM offices in Beverly Hills. Photos by AP and Bloomberg.
Amazon Apple Entertainment

Why Amazon Is Pursuing MGM—and What It Means for Apple

By and  |  May 19, 2021 6:01 AM PDT
Photo: Amazon logo in Santa Monica and MGM offices in Beverly Hills. Photos by AP and Bloomberg.

In the space of two weeks last month, Sony Pictures announced deals to license its movies to both Netflix and Disney. The deals complement each other: Netflix will show Sony movies soon after they’ve been in theaters and Disney will show them after they go off Netflix. One company conspicuously shut out of the deal was Amazon, which was also vying for rights to the Sony movies, according to a person familiar with the situation.

That previously unreported situation could help explain Amazon’s interest in buying MGM, as we reported earlier this week, in a deal likely to be worth between $7 billion and $10 billion. Sony was one of a dwindling number of Hollywood studios still willing to license its films to companies like Amazon, a result of most entertainment companies launching their own streaming services. With Sony’s content off the table for several years, MGM, which owns a library of 4,000 movies, including the Pink Panther, Rocky and James Bond titles and a TV production arm, likely looks much more appealing.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Exclusive Asia Startups
How Instagram’s TikTok Envy Finally Backfired
Art by Clark Miller.
Last month, Kim Kardashian, Kylie Jenner and other influencers stirred up a public relations firestorm for Instagram, complaining to their hundreds of millions of followers about the app's recent attempts to mimic TikTok. Those efforts were just part of a broader internal effort to take on the Chinese short-form video app, though. The Information has learned that recent tests of changes to...
Latest Briefs
 
China’s Economy Slows Amid Soaring Youth Unemployment
China’s Tech Giants Alibaba and ByteDance Share Algorithms With Government
Peloton Announces Job Cuts, Store Closures and Price Hikes
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Art by Josh Brill
Exclusive Asia Startups
TikTok’s $4 Billion Advertising Machine Is Messy Behind the Scenes
Two years ago, social media sensation TikTok came up with a slogan to prod brands to be more authentic in their advertisements on the app: “Don’t Make Ads.
Viral Patel, global head of technology investing for Blackstone Credit. Art by Clark Miller.
Exclusive Venture Capital Startups
Blackstone Plans to Back Tech Startups in $2 Billion–Plus Lending Push
Private equity giant Blackstone is gearing up to make its first major push into lending to startups and technology companies—joining a corner of the debt market that’s quickly heating up.
Illustration by Clark Miller
Man v. Machine AI
Can Creatives Survive the Future War Against Dall-e 2?
Earlier this year, Karen X. Cheng, a video director in San Francisco, was commissioned by a client to make an augmented reality dress for special events.
Art by Clark Miller.
Venture Capital Startups
Venture Capital’s Limited Partners Warn of Fundraising Slowdown
The era of easy money could be over for venture capital firms. Although VC fundraising has so far matched last year’s brisk pace, limited partners—the people and institutions that invest in VC funds—say a slowdown is afoot.
Photo by Alaska Air Group.
Facebook
For Meta’s Next CFO Susan Li, Metaverse Dreams Mean Real-World Challenges
When Meta Platforms reported its first-ever quarterly revenue decline last month, the Facebook parent company also made a key promotion with little fanfare: 36-year-old finance executive Susan Li would become chief financial officer in the fall, replacing longtime CFO Dave Wehner, who held the role for eight years and would transition to a strategy role.
Data Point Amazon Markets
Why Amazon Is Giving Employees Record Amounts of Stock, Even as It Trims Head Count
At a moment when Amazon’s overall workforce is shrinking, the company is awarding stock to employees at a record-breaking clip to keep top talent from heading for the exits.