MGM stays mum on report about talks with Amazon

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Metro-Goldwyn-Mayer refused to comment Thursday about a Variety report that the studio is in talks to be acquired by Amazon.

“We are aware of speculation in the media,” Chief Financial Officer Kenneth Kay said at the end of a prepared presentation about first-quarter results. The executive didn’t reference Amazon by name.

Kay said the company only take questions about first-quarter performance. No questions about Amazon were asked.

Variety reported May 17 that Amazon and MGM were in talks where the studio would be bought for $9 billion.

MGM emerged from bankruptcy in 2010 owned by hedge funds. Such funds typically look for a relatively quick turnaround and sale so they can turn a profit. MGM’s hedge fund owners have held onto the studio for longer than normal.

Pro tip: Companies involved in major moves (restructurings, deal negotiations) often refer to stories such as the Variety report as “speculation.” That is until the major moves are ready to be announced.

Regardless, this week’s investor call mentioned No Time to Die once. It was basically referenced as part of why MGM will have great second-half financial results.

2 Responses

  1. […] last week reported first-quarter financial results. During an investor call, Chief Financial Officer Kenneth […]

  2. […] MGM dismiss stories it was in talks with Amazon as “speculation in the media”? Were they […]

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