Second report suggests Apple and MGM held ‘preliminary’ talks about an acquisition
Apple TV+ at the moment solely provides entry to Apple unique TV exhibits and motion pictures, however one other report this week suggests that Apple has thought-about increasing that library. CNBC studies that MGM and Apple have held “preliminary talks” about an acquisition, corroborating a report from the Wall Street Journal final month.
According to this week’s report, MGM has held “preliminary talks” with “a number of companies,” together with each Apple and Netflix. MGM’s objective is to “gauge their interest in an acquisition” after build up a content material library “worth more than $10 billion,” the report says. Much of that worth comes from MGM’s franchises.
MGM is the proprietor of a number of movie and tv franchises, together with James Bond, RoboCop, and The Magnificent Seven. It additionally owns premium cable community Epix, and has made exhibits together with “The Handmaid’s Tale” and “Live PD.”
MGM had income of greater than $1 billion for the primary 9 months of the yr consisting primarily of about $600 million in TV and movie licensing income and $300 million from Epix subscriptions. For the 9 months ended September 30, 2019, MGM reported adjusted earnings earlier than curiosity, taxes, depreciation and amortization of $123 million.
Much like the primary report from the Wall Street Journal, this week’s report doesn’t embody particulars on the present standing of talks between MGM and Apple, or if talks are nonetheless going down. It doesn’t appear as if any deal between MGM and Apple is imminent. Instead, the report suggests it was one thing thought-about at the very least by MGM.
Last month’s report additionally mentioned Apple had additionally held talks with PAC-12 about probably integrating dwell sports activities into Apple TV+.
Unlike its rivals, Apple TV+ is residence purely to unique content material from Apple and doesn’t at the moment supply a again catalog of any type. While Apple is constant to ramp up its unique content material manufacturing, these studies counsel that Apple has at the very least thought-about the thought of an acquisition to construct a broader catalog of content material.
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