Amazon’s $8.5 billion purchase of MGM will give it rights to James Bond, ‘Legally Blonde,’ ‘Robocop,’ ‘The Handmaid’s Tale,’ and much more. Here’s what the tech giant could own under the deal.

robocop original
Amazon now owns the rights to “Robocop,” among many other classic films.

  • Amazon is buying MGM for $8.45 billion, the companies announced on Wednesday.
  • From James Bond to “The Handmaid’s Tale,” MGM is getting a massive trove of movies and TV.
  • These are the highlights of the blockbuster acquisition.
  • Visit the Business section of Insider for more stories.

Amazon just dropped $8.45 billion to buy MGM Studios, the decades-old film studio that owns rights to some of the biggest movies and TV shows in the world.

In the press release announcing the deal, Amazon pointed to the “vast catalog” of “more than 4,000 films” and “17,000 TV shows” as the reason for the purchase – assuredly intended to bolster Amazon’s Prime video streaming service.

So, what’s Amazon getting for nearly $8.5 billion?

James Bond movies
A smattering of Bonds.

The decades-long catalog of James Bond films is among the “more than 4,000” films Amazon is buying, in addition to classic movies like “12 Angry Men,” “Silence of the Lambs,” “Thelma & Louise,” “Midnight Cowboy,” “Fiddler on the Roof,” “Dances with Wolves,” and “Raging Bull.”

Another major franchise Amazon gets in the deal: “Rocky,” as well as the more recent “Creed” films.

And that’s just movies.

In terms of television, Amazon’s getting more recent classics, like “Fargo,” “The Handmaid’s Tale,” and “Vikings.”

Beyond the titles specifically noted by Amazon, there are countless others that belong to the MGM Holdings catalog – though it’s not completely clear which movies and TV shows have rights split up between several companies.

MGM Holdings includes MGM Television, for instance, which counts “The Real Housewives” franchise among its titles. An MGM rep confirmed that “The Real Housewives” franchise is part of the deal, as well as “The Voice,” “Shark Tank,” and “Survivor.”

What we know for sure isn’t included in the deal is the vast library of MGM films from prior to 1986, which are controlled by Turner Entertainment Company.

Beyond what’s listed above, Amazon’s press release included “Basic Instinct,” “Legally Blonde,” “Moonstruck,” “Poltergeist,” “Stargate,” “Tomb Raider,” The Magnificent Seven,” The Pink Panther,” and “The Thomas Crown Affair” among the movie rights it acquired in the deal.

Amazon and MGM representatives were unable to clarify the full list of acquired movie and TV rights in the deal.

Got a tip? Contact Insider senior correspondent Ben Gilbert via email (bgilbert@insider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

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The merger of WarnerMedia and Discovery has at least $3 billion in ‘cost synergies,’ a phrase that often means layoffs

John Stankey, WarnerMedia
AT&T CEO John Stankey.

  • The merger of AT&T’s WarnerMedia with media company Discovery includes at least $3 billion of annual “cost synergies.”
  • AT&T didn’t detail these cost cuts when it announced the merger on Monday.
  • Cost “synergies” often mean layoffs.
  • See more stories on Insider’s business page.

US telecom giant AT&T on Monday announced it would merge its content unit WarnerMedia with media company Discovery, creating a new streaming giant that could go head-to-head with Netflix and Disney.

In the press release, AT&T highlighted that the deal had “at least $3 billion in expected cost synergies annually.” These “synergies,” or cost reductions, would allow the newly formed company to invest in its content and scale its business, AT&T said.

Cost “synergies” are a common feature of big deals, especially when companies have overlapping operations, as is the case with WarnerMedia and Discovery. They can take many forms, including layoffs, the consolidation of suppliers, or the sharing of office space.

WarnerMedia – which includes HBO, TNT, CNN, and Warner Bros. – and Discovery both have entertainment and news assets. Both have streaming platforms: HBO Max for WarnerMedia, and Discovery Plus for Discovery.

AT&T did not detail the cost savings when it announced the deal Monday. Insider has reached out to AT&T and Discovery for comment.

AT&T shareholders would receive stock equating to 71% of the new company, while Discovery shareholders would own 29%, the companies said in the press release.

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AT&T is in deal talks to create a new streaming giant with Discovery

at&t
  • AT&T is discussing a deal to split off content assets and combine them with Discovery, a source told Insider.
  • The deal, which could be announced in the coming days according to multiple reports, would create a new streaming giant better placed to take on Netflix and Disney.
  • Both companies declined to comment on the discussions.
  • See more stories on Insider’s business page.

AT&T, the telecom giant that also owns a host of media and entertainment outlets including HBO, TNT, CNN, and Warner Bros., is in talks with Discovery to combine content assets, a source told Insider.

Such a deal would create a new streaming giant better placed to compete with Netflix and Disney. It would also involve AT&T splitting off assets it acquired when it bought Time Warner for $85 billion in 2018.

Bloomberg was first to report the possible deal. The discussions are ongoing but a deal could be announced as soon as Monday, the Wall Street Journal later reported.

The deal would include several parts of WarnerMedia’s division, including CNN, TNT and TBS, according to the WSJ, which said a big stake of the new entity would be owned by AT&T shareholders.

AT&T declined Insider’s request for comment. A spokesperson for Discovery told Insider the company will “never comment on market speculation or rumors.”

AT&T had a market capitalization of about $230 billion as of Friday. Discovery, with its reality TV focused programming and networks including the Food Network, HGTV and TLC, has a market capitalization of about $17 billion.

The prospective deal raises questions about who will run the combined entity. The entertainment industry establishment has been lukewarm on WarnerMedia’s CEO Jason Kilar, who ruffled feathers in Hollywood with a straight to streaming strategy for newly released movies. The Wall Street Journal revealed that WarnerMedia paid some $200 million to smooth talent who were upset by the change.

Meanwhile, Discovery CEO David Zaslav is close with CNN chief Jeff Zucker, who had been positioning to run WarnerMedia.

As AT&T pursued its landmark merger with Time Warner three years ago, the company maintained that joining forces was the only way both could compete with the likes of Netflix and Amazon.

A deal could give HBO Max a much better shot at competing with Netflix and Disney+, since Discovery’s non-scripted content from HGTV and Food Network are hugely popular with viewers.

In addition, AT&T had been planning to expand HBO Max internationally, and the Discovery combination could be a big boost to those plans. Discovery owns European rights to Olympic Games and owns Eurosport. The news comes on the eve of the TV upfronts when advertisers commit billions of dollars to the traditional and streaming video business.

AT&T has seen steady growth of HBO Max since it launched last year. It gained almost 3 million subscribers in the first quarter of 2021, bringing total subscribers to 9.7 million. The platform is set to expand its reach from just the US, launching in Latin America next month. In total, HBO Max and HBO combined have about 64 million subscribers globally, compared to Netflix’s 208 million.

Discovery Plus launched in the increasingly crowded streaming market in January. The streaming platform is home to 55,000 episodes of shows from brands like HGTV, Food Network, TLC, A&E, History Channel, and the Discovery Channel, which airs the popular Shark Week series each year. Discovery Plus also features content from the BBC.

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AT&T and Discovery are reportedly in talks to combine content assets

at&t
  • AT&T and Discovery are discussing a deal to combine content assets, Bloomberg reported, citing unnamed sources.
  • Combining content assets would give both a better platform to compete against streaming giants like Netflix.
  • Both companies declined to comment on the reported discussions.
  • See more stories on Insider’s business page.

AT&T, the telecom giant that also owns a host of media and entertainment outlets including HBO, TNT, CNN, and Warner Bros., is in talks with Discovery to combine content assets, Bloomberg News reported on Sunday.

Such a deal would give AT&T, which acquired WarnerMedia in 2018, a better platform to compete with Netflix and Disney, Bloomberg reported, citing sources familiar with the talks.

The discussions are “ongoing and there’s no certainty they will lead to a transaction,” the sources said, according to Bloomberg.

A deal could be announced as soon as Monday, the Wall Street Journal reported.

AT&T declined Insider’s request for comment. A spokesperson for Discovery told Insider the company will “never comment on market speculation or rumors.”

Combining the content assets of the two media giants could vastly expand streaming options and lure new users. AT&T had a market capitalization of about $230 billion as of Friday while Discovery, with its reality TV focused programming and networks including the Food Network, HGTV and TLC, has a market capitalization of about $17 billion.

As AT&T pursued its landmark merger with Time Warner three years ago, the company maintained that joining forces was the only way both could compete with the likes of Netflix and Amazon.

Last year, WarnerMedia began streamlining some operations as the coronavirus pandemic closed theaters and took a bite out of television ad revenue as viewers increasingly dropped cable and moved to streaming options. As Insider previously reported, AT&T has plans to try to become the biggest media company through cost-cutting and a focus on streaming service HBO Max.

The company has seen steady growth of HBO Max since it launched last year. It gained almost 3 million subscribers in the first quarter of 2021, bringing total subscribers to 9.7 million. The platform is set to expand its reach from just the US, launching in Latin America next month. In total, HBO Max and HBO combined have about 64 million subscribers globally, compared to Netflix’s 208 million.

Discovery Plus launched in the increasingly crowded streaming market in January. The streaming platform is home to 55,000 episodes of shows from brands like HGTV, Food Network, TLC, A&E, History Channel, and the Discovery Channel, which airs the popular Shark Week series each year. Discovery Plus also features content from the BBC.

–Claire Atkinson contributed to this report

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Okta drops after company gives weak guidance and announces $6.5 billion Auth0 acquisition

Okta Auth0 deal
Okta cofounders Frederic Kerrest and CEO Todd McKinnon (top L to R) on a video call signing the agreement to acquire Auth0 for $6.5 billion with its cofounders CEO Eugenio Pace and Matias Woloski (bottom L to R)

  • Okta fell by nearly 10% Thursday as the ID-authentication software company’s outlook missed Wall Street’s view. 
  • The company expects a first-quarter adjusted loss of $0.20 to $0.21 a share compared with the consensus of a loss of $0.07. 
  • Okta plans to buy rival Auth0 in a transaction valued at $6.5 billion. 
  • Visit the Business section of Insider for more stories.

Okta shares dropped nearly 10% Thursday following a quarterly outlook that missed Wall Street’s estimate while the identity-authentication software maker said it plans to buy rival Auth0 in a $6.5 billion stock deal.

The company late Wednesday projected a first-quarter adjusted loss of $0.20 to $0.21 per share, which was wider than the consensus estimate of a per-share loss of $0.07. It also expects year-over-year growth in total revenue to $237 million to $239 million compared with Wall Street’s view of $237 million.

Shares of Okta lost as much as 9.6% when it hit an intraday low of $218. The stock later pared the decline to 4.5%. Over the past 12 months, the shares have advanced about 79%.

The company’s projection came within its fourth-quarter financial report and alongside a separate announcement about planning to buy Auth0. Okta said its guidance does not include any potential impact from the proposed Auth0 deal.

Okta said the pending deal will stoke growth in the $55 billion identity market. Auth0 will run as an independent business unit inside of Okta and both of its platforms will be supported and integrated over time.

The transaction “will accelerate our innovation, opening up new ways for our customers to leverage identity to meet their business needs,” said Todd McKinnon, Okta’s CEO and co-founder, in the statement.

For the fourth quarter, the company posted adjusted earnings of $0.06 a share, swinging from a loss of $0.01 a year ago. Revenue of $234.7 million increased from $167.3 million in the same period a year ago.

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Walmart’s Flipkart considers going public in the US via SPAC, report says

flipkart ceo Kalyan Krishnamurthy
Flipkart CEO Kalyan Krishnamurthy.

  • Flipkart is considering a US IPO and has approached several SPACs about a potential deal, Bloomberg reported. 
  • The online retailer may seek a valuation of at least $35 billion in a deal with a black-check firm.
  • Walmart bought a stake in Flipkart in 2018.  
  • Visit the Business section of Insider for more stories.

Walmart’s Flipkart is looking into going public in the U.S., with the Indian online retailer considering a merger with a blank-check company as an option, according to a report Thursday.

Flipkart’s advisers have approached several special purpose acquisition companies, or SPACs, in aiming for an initial public offering in the US and to quicken the listing process, Bloomberg reported, citing unidentified sources.

Flipkart could seek a valuation of at least $35 billion in a blank-check transaction, the report said. 

Talks are at an early stage and Flipkart could look into other options. A Flipkart representative had no immediate comment, Bloomberg reported.

Walmart in 2018 bought a majority stake in Flipkart in a $16 billion deal. Flipkart sells 80 million products on its platforms and is battling Amazon and other companies for market share in India. 

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Peridot Acquisition Corp. surges as SPAC set to merge with battery recycler Li-Cycle

Lithium-ion battery factor
A trove of startups are working on a breakthrough battery technology using silicon that could make them last 20-40% longer. Here, a lithium-ion battery factory in France.

  • Peridot Acquisition Corp. stock climbed past $17 in early trading Tuesday on news it would merge with Li-Cycle. 
  • The newly combined company Li-Cycle Holdings Corp. will trade on the NYSE under ticker ‘LICY’. 
  • The deal is expected to close in the second quarter and have a pro forma equity value of about $1.67 billion. 
  • Visit the Business section of Insider for more stories.

Peridot Acquisition Corp. stock climbed Tuesday as the SPAC struck an agreement to merge with Li-Cycle, a lithium-Ion battery recycler.

The two companies said in a joint statement that the deal will result in the creation of Li-Cycle Holdings Corp. and that the combined company will have a pro forma equity value of about $1.67 billion.

Peridot stock rose by as much as 14% to $15.74 before paring the gain to 4% during the regular session. The stock ahead of the opening bell climbed as much as 28% to $17.79. 

Li-Cycle, which was founded in Toronto in 2016, has commercial contracts with more than 40 blue chip suppliers, among other business agreements, with customers including 14 of the world’s largest automotive and battery manufacturers.

The companies said Li-Cycle should receive about $615 million in gross transaction proceeds, which will be used toward the company’s plans to expand worldwide. All of Li-Cycle’s existing shares will roll into the combined company, they said.

“Li-Cycle is at the forefront of one of the most crucial and under-penetrated markets in clean technology that is growing in lock-step with the electrification of mobility,” said Peridot Chief Executive Alan Levande, who will join Li-Cycle’s board of directors.

Investors in the deal include Neuberger Berman Funds, Franklin Templeton and Mubadala Capital and Peridot’s sponsor Carnelian Energy Capital.

The newly merged company will be listed on the New York Stock Exchange and trade under the ticker symbol “LICY.” The deal is expected to close in the second quarter of 2021.

Roughly 130 SPACs have gone public in 2021, outpacing the first nine months of 2020, according to investment firm Accelerate. 

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Churchill Capital Corp IV rockets 20% as rumors of Lucid Motors merger fuel sustained rally

Lucid Air.
Lucid Air presentation with CEO Peter Rawlinson.

  • Shares of Churchill Capital Corp IV jumped some 20% on Monday amid continued optimism for a merger with EV Lucid Motors.
  • Lucid is in talks with the Public Investment Fund of Saudi Arabia to create an EV factory in the country. 
  • The EV manufacturer also recently completed the construction of a 590-acre production facility in Arizona.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Churchill Capital Corp IV skyrocketed another 20% on Monday amid continued optimism surrounding a potential merger with Lucid Motors.

The news of Michael Klein’s SPAC potentially merging with EV manufacturer Lucid to take the company public caused shares of the blank-check company to jump some 167% in under three weeks.

Still, Churchill Capital IV has refused to either confirm or deny the reports.

“We do not generally comment on rumors and speculation and will not comment as to whether the Company is or is not pursuing a specific business opportunity other than saying, as noted, we are always evaluating a number of potential business combinations,” the company wrote in a statement on January 19.

Read more: Michael Saylor has invested over $1 billion of MicroStrategy’s funds in Bitcoin. He explains why he is making such a massive bet on the digital asset.

Despite the lack of certainty around the merger, hopes of a Lucid acquisition are pushing Churchill Capital Corp IV’s stock higher. And with The Financial Times reporting the EV manufacturer is in talks with the Public Investment Fund of Saudi Arabia to build an electric vehicle factory near the Red Sea city of Jeddah, shares of Churchill are on fire yet again.

The Financial Times spoke with the Saudi fund’s governor, Yasir Al-Rumayyan, who confirmed reports out of Bloomberg earlier this month that said Lucid was thinking of making a new factory in the kingdom.

The move by Lucid seems to be a logical step given the company’s history with the Saudia Arabian fund.  

Back in 2018, a cash-strapped Lucid took in a reported $1.3 billion from the Saudis to keep operations running, an investment that was conditional on Lucid developing a production factory in Saudi Arabia, per Bloomberg.

Read more: Cathie Wood’s ARK Invest runs 5 active ETFs that more than doubled in 2020. She and her analysts share their 2021 outlooks on the economy, Bitcoin, and Tesla.

The news of a new factory in Saudi Arabia comes on the back of Lucid’s December announcement of the completion of a 590-acre production facility in Casa Grande, Arizona.

The Arizona factory expects to deliver up to 30,000 units per year in its first years of operation. And in its final form, the manufacturing capacity will grow to 400,000 annually. 

If Churchill Capital Corp IV and Lucid do end up merging, the EV company would also draw in a hefty amount of cash from the SPAC to fund its operations going forward.

All of this news has investors jumping at the chance to buy a blank-check company that still may or may be the EV darling that can compete with Tesla.

Churchill Capital Corp IV shares traded around $26.79 per share on Monday at 9:31 am EST. The SPAC now boasts a market cap of $6.93 billion.

Read more: This actively-managed SPAC ETF amassed $60 million assets within a month of launching. Its founder breaks down how to pick blank-check firms – and shares 3 to watch in 2021

 

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Office Depot jumps 20% after Staples offers to buy the company for $2.1 billion

office depot
A view of the Office Depot store in Annapolis, Wednesday, March 25, 2020.

  • The parent company of Office Depot surged as much as 20% on Monday after Staples offered to acquire the company for $40 per share, or $2.1 billion.
  • This would be Staples’ third attempt at buying Office Depot in the last 25 years. In 2015, the FTC said Staples’ proposed acquisition of Office Depot for more than $6 billion would violate anti-trust law.
  • Staples went private in 2017 after it sold itself to Sycamore Partners.
  • Visit Business Insider’s homepage for more stories.

The ODP Corporation, parent company of Office Depot, soared as much as 20% on Monday after Staples offered to buy the company for the third time in 25 years.

In a letter sent to the board of directors of ODP, Staples offered $40 per share for Office Depot, or $2.1 billion. Staples last tried to acquire Office Depot for more than $6 billion, but the proposed merger was declined by the FTC due to anti-trust concerns.

Staples also tried to acquire Office Depot in 1997. The current offer represents a 61% premium over the average trading price of Office Depot over the past 90 days. 

Staples went private in 2017 after selling itself to Sycamore Partners and affiliates of Staples currently own about 5% of outstanding shares of Office Depot. 

“Staples has sufficient resources to finance the transaction, so our obligation to proceed with the transaction is not subject to a financing contingency,” the letter said.

Staples would be prepared to sell some units of Office Depot to unlock value and escape antitrust concerns from US regulators, according to the letter.

And in the event that Office Depot and Staples can not agree on a deal, Staples plans to launch an all-cash tender offer for 100% of ODP stock in March.

In a statement, Office Depot confirmed receipt of the letter from Staples and said it would carefully review “the proposal with its financial and legal advisors to determine the course of action that it believes is in the best interests of the Company and its shareholders.”

Both companies expect a six month regulatory review process if the deal moves forward.

Read more: BANK OF AMERICA: Buy these 10 Dow stocks to take advantage of rich dividends and a long-term strategy primed for a comeback in 2021

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