Amazon’s Entertaining Buy, Tesla’s Ford-Tough Competition
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 28 May 2021
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:07.0 | From full global headquarters, this is Motley Fool Money. |
| 0:19.0 | It's the Motley Fool Money Radio Show. I'm Chris Held joining me this week's senior |
| 0:22.0 | analyst Jason Moser and Ron Gross. Good to see you as always, gentlemen. |
| 0:26.0 | Patty. Doing Chris. We've got the latest headlines from Wall Street. We'll get a report on the automotive industry |
| 0:31.0 | from veteran journalist Paul Linert. And as always, we've got a couple of stocks on our radar. |
| 0:36.0 | But we begin with another deal in the media landscape. This week Amazon bought MGM studios for $8.5 billion. |
| 0:44.0 | MGM was founded nearly a century ago and the studio library includes 17,000 TV shows and more than 4,000 films, |
| 0:53.0 | including the James Bond and Rocky Balboa franchises. Jason pretty much everyone thinks that Amazon overpaid for MGM. |
| 1:03.0 | Let's face it, they need the content and they've got the money. |
| 1:07.0 | Yes and yes, they do need the content and they do have the money. And I agree. It is probably, it's easy to look at the |
| 1:14.0 | studio and at least in the near term and feel like maybe they overpaid. But I also, I feel like this is sort of a, as |
| 1:23.0 | much as we love Disney for their vast catalog of IP, this to me is an investment on that same wavelength. |
| 1:29.0 | And so what I'm getting at here is the while it looks like today, they're paying it off a lot for a content that may or may not |
| 1:36.0 | be paying out in the near term. It also does give them, I think, a really long tail of opportunity in taking this content, |
| 1:45.0 | taking this IP in a number of different directions, right? Backstories. Doing all of that stuff that Disney does so well with all of its |
| 1:52.0 | IP, making new stories out of content that they already have. I mean, this gives Amazon at least the potential to do that, |
| 1:59.0 | which I think is encouraging. And then the other side of this deal, you know, it's not like they're going to get access to |
| 2:06.0 | everything. I mean, licensing video content is a very, it's an involved affair and it's difficult to always connect all the |
| 2:13.0 | dots. So while you might not see all of this content, immediately making its way to Amazon's distribution, I think that what it does do, |
| 2:23.0 | it giving Amazon ownership of it, even though you may see that content on other channels, it at least gives Amazon the opportunity to monetize it to some extent. |
| 2:32.0 | So I just think this requires looking a little bit further out than probably many would like to. |
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