Will The Amazon Purchase of MGM Influence Its Betting Business?
You may have heard that Amazon is buying MGM and wondered if this will affect the MGM Grand or even BetMGM. How will the deal impact these betting businesses? Some people have even asked if this marks a change in strategy for the company.
Well, the answer is that they won’t be impacted at all. BetMGM – the sports betting app, and MGM Grand, are different entities.
In 2010, when MGM Studios filed for bankruptcy, MGM Resorts had to come out and make a statement to distance themselves. They explained that “MGM Studios is a completely separate entity with no common ownership,” indicating that they wouldn’t be impacted.
So, if you currently keep track of the latest MLS scores to bet on soccer, you’ll be able to rest assured that BetMGM will still be an option.
So, if the two aren’t connected, why do they both use very similar branding. MGM as a company had a major shakeup after the 2008 financial crisis, and the majority of its shares were sold. The company restructured between 2009 and 2010.
The company, called the MGM Mirage, was partially sold by Kirk Kerkorian and the Tracinda Corporation he owns. Kerkorian was also once the owner of MGM Studios, the Metro-Goldwyn-Mayer movie studio. This is where the MGM Grand and MGM Mirage got their names, but the Mirage would eventually change its name to MGM Resorts International.
This is the branch under which the betting operations occur, and Amazon has not purchased this. Instead, Amazon has bought MGM Studios.
So, when you hear about the $8.5bn merger of Amazon and MGM, you’ll know that this purely relates to MGM Studios.
While MGM Studios was previously linked via Kirk Kerkorian to the gambling side of the business, this is no longer the case. Company ownership can get confusing, right?
While not influencing the gambling industry in America, the deal itself is bound to affect many other industries and cause some changes to the streaming business in particular.
Metro-Goldwyn-Mayer Studios Inc. has been involved in the production of movies for almost 100 years, as the company was founded back in 1924.
For Amazon to shell out more than $8bn, it is clear that there would have to be significant potential growth and a big upside for Jeff Bezos’s giant retail business.
Both television and film are critical components of the company’s business, with some strong links to the UK.
The Rocky and James Bond film franchises are two of its main products, including the recent continuation of the Rocky story in the “Creed” series. MGM has also made a lot of big moves in the world of television recently. It is easy to understand why streaming has become one of the biggest draws to the MGM brand. The Handmaid’s Tale is one of the recent productions that has allowed the brand to hit new heights.
Amazon is always keen to expand its offering, and indeed we will see even more of the MGM catalog making its way onto our screens via Amazon Prime Video in the coming months and years.
Prime members are already enjoying much more from their membership, including live sports streaming, as the retailer branches out and buy the rights to more TV productions and events.
MGM has made over 17,000 episodes of television shows and over 4,000 movies, so you can see the appeal of adding them to Amazon’s business and introducing new and exciting ways to watch shows and develop new ideas.
The betting “arm” of the previous owner’s business was never linked, so don’t expect Amazon to go into this market any time soon. However, this is an industry with a changing landscape too.
In the US, more states are considering relaxing their laws on gambling and offering sportsbook betting, so there is every chance that the two will grow simultaneously.
Betting companies are improving their offerings all the time. Although Amazon currently has no link to the MGM gambling companies, there is every chance that both these businesses will experience growth in the coming years.
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