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Amazon agrees to buy iconic MGM film studio for $8.45BN | Business and Economy News

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Amazon.com Inc. agreed to buy the Metro-Goldwyn-Mayer movie company for $8.45 billion, a bet that a nearly century-old Hollywood icon can feed an insatiable demand for streaming content.

The takeover is Amazon’s biggest acquisition since it agreed to buy Whole Foods in 2017 for $13.7 billion but follows investments of about $11 billion on content for its streaming video and music services last year alone.

“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios, in a statement. “It’s very exciting and provides so many opportunities for high-quality storytelling.”

Amazon shares rose about 0.5% in early trading in New York.

The proliferation of streaming services, including newer arrivals such as HBO Max and Disney+, has put pressure on Amazon to acquire more programming. Chief Executive Officer Jeff Bezos has made no secret of his desire for movie moguldom, and MGM’s vast backlog provides an abundance of streaming material, not to mention an opportunity to mine the iconic James Bond and Rocky franchises for new films and television shows.

Moreover, with retail rivals like Walmart Inc. rolling out more sophisticated online stores, Amazon must work even harder to keep its 200 million Prime subscribers loyal.

MGM has been seen as a takeover target for years, but was never able to close a sale before. The company made a fresh push last year, when it reportedly hired advisers to seek offers.

Previously, Amazon has acquired smaller startups it perceived as a threat – footwear seller Zappos, say, or Diapers.com parent Quidsi. Amazon also has snatched up-and-comers in new business lines, such as the game platform Twitch or Kiva, which makes warehouse robots.

Big Bucks

It’s unusual for Bezos to spend big bucks on a legacy business like MGM. The only other example is the purchase of Whole Foods Market in 2017, which came after Amazon spent a decade trying to become a player in grocery sales — with little to show for its efforts and investment. Today, some analysts deem the Whole Foods acquisition wrong-headed and point to the fact that Amazon has since started a rival grocery chain.

For MGM, the studio that brought James Bond and Scarlett O’Hara to the big screen, the deal provides a finale to a bumpy era of hedge-fund ownership that began with a bankruptcy over a decade ago. MGM’s lead shareholder is the Anchorage Capital Group LLC, which became an owner with three other investors as part of a 2010 bankruptcy agreement that erased about $4 billion in debt.

MGM’s earnings before interest, taxes, depreciation and amortization rose 48% to about $307 million last year, lifted by profit from its 4,000-title film library. But with a lack of new releases, sales declined 3% to $1.5 billion.

Under Anchorage, the studio aspired to its old glory — a legacy that includes “Gone With the Wind,” the top film of all time in ticket sales, and the biblical classic “Ben-Hur,” which shares the record for most Academy Awards at 11.

The new owners hired a moviemaker CEO in Gary Barber, a Hollywood heavyweight known for films such as “The Hitchhiker’s Guide to the Galaxy” and “Ace Ventura: Pet Detective.” He oversaw a new James Bond movie, “Skyfall,” that generated more than $1 billion in ticket sales — the studio’s biggest-grossing film ever — and partnered with Warner Bros. on the blockbuster “Hobbit” films.

MGM also branched out into television. The studio took control of the premium cable network Epix, and acquired the TV production company owned by famed producer Mark Burnett, known for creating “Survivor” and “The Apprentice.” The studio also created the critically acclaimed series “The Handmaid’s Tale” and “Fargo,” adding to a lucrative library.

Hedge funds rarely hang on to such investments for more than a few years, and observers long thought that Barber was prepping the studio for sale. In 2017, reports suggested that MGM was in discussions with a Chinese company, though no deal materialized.

Lurking Turmoil

Behind the studio’s renewed financial stability under Anchorage and the M&A rumors, there was turmoil within MGM’s executive ranks. Five months after Barber’s contract was renewed in 2018, he was abruptly fired by Anchorage CEO Kevin Ulrich. Reports surfaced that the two had clashed, and that Barber’s relationship with Bond producer Barbara Broccoli was also tense.

Barber ultimately walked away with a $260 million exit package. Ulrich never named a replacement for Barber, and instead created an office of the CEO, which has been in place for three years. The unusual arrangement led the Hollywood Reporter to say Burnett was sowing chaos within the company. He was said to have, at least in part, led to the ouster of film studio head Jonathan Glickman in early 2020, among other executives.

When the coronavirus struck, MGM was particularly hamstrung. Its biggest anticipated film release, the new James Bond film “No Time to Die,” has been postponed repeatedly. The company approached both Apple Inc. and Netflix Inc. about buying the film for their online services, but never reached a deal.

While coping with the prospect of production delays and higher costs due to Covid-19, MGM suffered another blow. In a June 2020 lawsuit in New York, a woman accused Ulrich of sexual battery in a swanky Manhattan hotel in June 2019. The case was ultimately withdrawn.

Late last year, MGM reportedly hired advisers to explore a sale of the company. The studio was said to seek about $5 billion, compared with the more than $8 billion that Ulrich predicted the company could fetch given time.

Metro-Goldwyn-Mayer traces its roots back to the 1920s merger of Marcus Loew’s Metro films with a film company run by Hollywood legend Louis B. Mayer. The studio, while making great pictures like “Dr. Zhivago” and “2001: A Space Odyssey,” drifted in and out of financial distress in the second half of the 20th century. Over the decades it was owned by Time Inc., CNN founder Ted Turner and more than once by the late billionaire Kirk Kerkorian.

Turner kept much of MGM’s library, which is now owned by AT&T Inc.’s WarnerMedia, soon to be part of Discovery Inc.

“I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision,” said Anchorage’s Ulrich, who is chairman of the board of MGM. “The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”

(Updates with shares in eighth paragraph and context.)



Source – www.aljazeera.com

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New Cabinet to Be Sworn-In Today

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Parliament has scheduled today Monday 21, 2021 for the inauguration of the new cabinet ministers.

For the whole of last week, 79 ministers were vetted by Parliament’s Appointments Committee led by Deputy Speaker Anita Among.

Two other appointees missed out reportedly due to health related challenges.

The swearing in event is being conducted with extreme caution by ensuring that all in attendance are free of Covid19.

President Yoweri Museveni was on Friday 18 forced to lock the country after fatalities of the novel virus spiked again.

Earlier on, Parliament was forced to scale down its work force after rumours that over 100 Members of Parliament were battling Covid-19.

The Institution’s Director of Communications Chris Obore however clarified on Friday that those affected attended crowded events; The State of Nation Address (SONA) and Budget Reading events.

The above events were held on June 4 and June 10, 2021 respectively.

“Over 3,000 people that included MPs, staff of Parliament, Police, ISO, SFC, Service Providers, Journalists, Prisons staff and invited guests were tested for COVID-19,” Obore explained.

“Out of all those tested for the events, approximately 100 came out positive. Note that Parliament has 529MPs (approximately 30 Parliament staff were manning the events,” he pointed out.

Obore refuted allegations the one hundred cases were from a sample of more than 3000 and disclosed that some had already recovered.

The post New Cabinet to Be Sworn-In Today first appeared on ChimpReports.



Source – chimpreports.com

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Policeman Arrested for Shooting Student while Chasing Suspect

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A policeman belonging to Flying Squad Unit in Arua City has been arrested for shooting and injuring a 16-year old pupil while chasing a suspect.

Hussein Yusuf of Oyoze Cell in Arua Central Division is admitted to hospital after both legs were shattered after he was shot at when four police officers fired indiscriminately as they pursued a suspected criminal.

According to relatives of the victim, the minor was performing ablution for 1pm prayers near their home yesterday when bullets caught him in the legs and he fell down. Yusuf Ismail, an elder brother to the victim said he had come out of the house to see what was happening as bullets were fired only so see his brother bleeding helplessly on the ground.

Hussein’s sister, Samari Eyotaru said her brother was rushed to Arua regional referral hospital where it was established through imaging scan that both his two legs were broken

Following the incident, relatives of the victim informed the police at Arua CPS who swung into action and opened a case of attempted murder under Arua SD Ref. 54/16/06/2021 against one of the officers, whose name they are however withholding saying that revealing it at this stage would jeopardize investigations.

Hudson Ocheng, the Police Spokesperson for West Nile confirmed the incident and said investigations are ongoing into the incident.

Ocheng added that the police officers fired after meeting resistance from the community who blocked them from arresting a suspect in connection with the theft of a motorcycle Reg. No. UFE 159N.

Reports from the relatives of Hussein indicate that by Thursday evening, doctors at Arua Regional Referral Hospital had referred the victim for further management at Lacor hospital as police had reportedly gone into negotiations with the family on footing the medical bills and probable compensation.

Since the disbanding of the Flying Squad more than three years ago, the W. Nile Police Flying Squad has apparently continued to operate independent of CID supervision under which they were placed for deployment and operations.

The post Policeman Arrested for Shooting Student while Chasing Suspect first appeared on ChimpReports.



Source – chimpreports.com

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Prisons Speaks out on Jamil Mukulu’s Health Condition

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The Uganda Prisons Service has described as “total fabrication,” claims that Jamil Mukulu, the former leader of the Allied Democratic Forces (ADF), is on the verge of death battling Covid-19 in Luzira Prison.

Frank Baine, the Uganda Prisons Service spokesperson, said Mukulu is suffering from “pneumonia and diabetes” but not Covid-19 and is admitted to the prisons health facility.

He, however, said the former ADF rebel leader is out of danger.

“He is sick like any other person and currently receiving treatment at Murchison Bay Hospital. It is also not true that he contracted Covid-19,” Baine said in an interview on Sunday.

This comes after the family of Mukulu, accused  Luzira Maximum Prison authorities of blocking them from seeing her son.

Nakiyemba Lutakome, the mother of Mukulu who lives in Kayunga District, said: “Recently, I received information from a lady who claimed she was from Luzira Prison that my son died. I have tried to get the truth in vain.”

She added: “If my son is dead, let prison authorities dump his body anywhere in this village, I am sure people will recognize his body and bring it here for burial.”

Mr Baine said they blocked the family as part of the prisons resolutions to control the spread of Covid-19.

Mukulu alongside 37 others is facing charges of murder, aggravated robbery, aiding and abetting terrorism and crimes against humanity at the International Crimes Division of the High Court.

Mukulu is described as the leader of ADF and Salaf Muslim community in Uganda who used to command his group with others still at large to carry out raids through which they  committed a number of crimes.

The group is further said to have robbed guns, ammunitions, a gold weighing machine, millions of money and attempting to take away the lives of many people.

Prosecution contends that Mukulu and the group committed these offenses in various districts such as Kampala, Wakiso, Mayuge, Budaka and Mbale among others and that the indiscriminate attacks instilled fear in the public to influence it for either   a social, political, economic or religious aim.

The post Prisons Speaks out on Jamil Mukulu’s Health Condition first appeared on ChimpReports.



Source – chimpreports.com

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