MGM

The streaming wars are really heating up now that Apple TV+ is a key player alongside the likes of Netflix, Hulu and Amazon Prime. It’ll soon get even more crowded with the upcoming arrival of Peacock from NBCUniversal and HBO Max from Warner Media. But not every content provider out there has the money to create their own streaming service, which means some studios are in the market to work out deals for their content libraries, or perhaps even selling the entire studio. That’s what MGM might be looking to do, and conversations with Netflix and Apple have already taken place.

In a recent report by CNBC taking a look at the state of the streaming wars, it’s mentioned that MGM owners Anchorage Capital, Highland Capital and Solus Alternative Asset Management have a content library worth upwards of $10 billion. That includes the franchises like James Bond, Mad Max, Rocky (including Creed), RoboCop, and The Pink Panther, as well as many other hit movies.

Netflix and Apple have already had preliminary talks about purchasing MGM, which isn’t just a content library, but an entire studio and entertainment company. They’ve produced hit shows like The Handmaid’s Tale, and they also own the cable channel Epix. So an acquisition by any of the streaming companies out there that can afford MGM would be a hefty purchase, and the fact that this is more than a library acquisition could end up keeping Netflix from following through, since they’ve never made a purchase like that before. Apple hasn’t made a purchase like that either, with their largest deal ever being the $3 billion purchase of Beats by Dre in 2014.

If you’re wondering why Disney, WarnerMedia and NBCUniversal haven’t talked to MGM yet, CNBC posits that they’ve probably spent too much money on big acquisitions elsewhere. All three of the streamers have spent billions to be the exclusive streaming homes to the likes of The Office, Friends, The Big Bang Theory, and many more, not to mention spending hundreds of millions on original programming.

MGM isn’t the only company out there who could end up getting snatched up. AMC Networks, Discovery, Lionsgate, Sony Pictures and even ViacomCBS (fresh off their recent merger) could end up being valuable properties for the larger media companies. However, some of those are family-owned, making it a little harder for them to get sold off, unlike MGM, which is owned by the aforementioned hedge funds.

As of now, it’s still early days on an MGM deal, but as the streaming wars heat up, it will certainly be interesting to see how these content providers stay afloat.

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