Amazon allocated $ 3.4 billion for the MGM Movie and TV Library, which it bought with the rest of the fabulous Hollywood company in a deal concluded in March last year.
Along with movies and TV content, Amazon in a SEC filing this morning set MGM Goodwill at $ 4.9 billion, most of which it spends in the North American segment. Goodwill, for accounting purposes, refers to less tangible assets, such as a brand, customer relationship, or proprietary technology. In other words, this is what will allow Amazon to continue building streaming projects with Leo Imprint.
The numbers appeared in a document relating to the company’s first quarter financial results. (Corporations typically issue profit and loss accounts in select numbers and then proceed to more comprehensive official accounting by the SEC.) And today, the tech giant’s shares are down 12%.
Amazon notes that the MGM deal ended on March 17. It spent $ 6.1 billion in cash and borrowed $ 2.5 billion, paying off the debt as soon as the deal was closed.
Titles from major libraries and the MGM and United Artists franchises include film and television franchises such as James Bond (although rights are limited); star gate, I think, Legally blonde, Shark tank Y fairy tale craft.
Along with film and television content, Amazon valued MGM Goodwill at $ 4.9 billion, most of which it spends in the North American segment. Goodwill, for accounting purposes, refers to less tangible assets, such as a brand, customer relationship, or proprietary technology.
Unsurprisingly, for a company worth nearly $ 1.3 billion, the MGM deal was considered “intangible” to Amazon’s overall financial results, according to the statement. The company’s full quarterly report did not include the results of the operations. As with other tech companies like Apple, Amazon’s video operations haven’t historically been segregated as a separate item on the balance sheet.
The costs associated with the purchase “were not significant,” the statement added.
The MGM acquisition is the largest acquisition to date by a digital player for a traditional film or television operation. Earlier this week, MGM Cinema Group President Michael de Luca and President Pam Abdi announced their departure with significant changes. While attempting to utilize the library’s features and formulate a study strategy, Amazon still holds its papers fairly close to the vest.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
