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James Bond, Meet Jeff Bezos: Amazon Makes $8.45 Billion Deal for MGM

“The real financial value behind this deal is the treasure trove of I.P. in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said in a statement.

Amazon’s appetite for movies became ravenous during the pandemic. It paid $125 million for the rights to “Coming 2 America,” $80 million for “Borat Subsequent Moviefilm,” and $200 million for “The Tomorrow War,” a Chris Pratt adventure that will arrive on Prime on July 2. Amazon also has Oscar ambitions, buying the rights to “Sound of Metal,” which was nominated for best picture and other top awards at this year’s ceremony.

When it comes to making its own hit films, Amazon has long struggled. MGM managers could help: Michael De Luca, MGM’s movie chairman, has a track record that includes, at various companies, the “Rush Hour,” “Austin Powers” and “Fifty Shades of Grey” franchises.

MGM also has a 17,000-episode television library and a TV studio that makes “Vikings,” “The Handmaid’s Tale,” “Fargo” and various “Real Housewives” shows. In 2014, MGM acquired Mark Burnett’s production company, One Three Media, which holds rights to competition series like “The Voice.” Mr. Burnett, a contentious figure in Hollywood because he helped shape Donald J. Trump’s image with “The Apprentice” and remained close to him during his divisive presidential term, serves as MGM’s television chairman.

Anchorage Capital, a New York investment firm, has been the majority owner of MGM for more than a decade. Before that, MGM was tossed between owners and, bitten by falling DVD revenue, eventually ending up in bankruptcy. It was worth about $2 billion in 2010, according to analysts.

Kevin Ulrich, Anchorage’s chief executive and MGM’s chairman, formally put the studio on the block late last year. Anchorage has been under pressure from various stakeholders to exit the investment, with some agitators complaining that Mr. Ulrich was overly enamored with Hollywood and should have sold years ago.

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Lordstown Motors halves the number of vehicles it will make in 2021.

Lordstown Motors, a start-up aiming to make electric pickup trucks, said on Monday that it would “at best” make just 50 percent of the vehicles it had previously hoped to this year.

Lordstown gained attention because it purchased an auto plant in Lordstown, Ohio, that General Motors had closed. It was also once hailed by former President Donald Trump for saving manufacturing jobs.

The company, which said Monday it was on track to start production in September, became a publicly traded company last year by merging with a special purpose acquisition vehicle, a company set up with cash from investors and a stock listing. Several other electric vehicle and related businesses have gone public through similar mergers in recent months taking advantage of investors desire to find the next Tesla.

Lordstown, which is being investigated by the Securities and Exchange Commission, said it lost $125 million in the first quarter of 2021, but ended the period with $587 million in cash.

After the news of its production outlook was released, Lordstown’s stock fell about 8 percent in after-hours trading, to just under $9. The stock briefly traded at about $30 last year.

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Disney Could Have Bought Time Warner in 2016

“About $20 billion of long positions were liquidated last week,” Sam Bankman-Fried, the C.E.O. of the crypto derivatives exchange FTX, told DealBook. “In terms of price movements: the biggest part of it is liquidations,” he said, suggesting the worst is over. But he also noted news from China late Friday of a crackdown on Bitcoin mining and trading. This added to other news of official scrutiny that has spooked crypto investors in recent days:

  • Financial regulators in Hong Kong announced support for a legislative proposal to create a licensing scheme for virtual asset exchanges and to ban trading for investors without a minimum of $1 million in their portfolios.

  • The Bank of Canada cited crypto concerns in its annual financial system review, saying that “the rapid evolution in cryptoasset markets is an emerging financial vulnerability.”

  • Gary Gensler, the chair of the S.E.C., said that American regulators “should be ready to bring cases” involving wrongdoing in crypto markets.

  • The Treasury Department noted in a report on tax proposals that “cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.” The I.R.S. said it would require more extensive reporting of crypto transactions.

Companies with Bitcoin on their balance sheets may be getting nervous. For accounting purposes, crypto is valued at its purchase price. If it goes up in value, this isn’t reflected in a company’s accounts but if it falls, the value is impaired and puts a dent in quarterly profits. Let’s check in on the three big corporate Bitcoin holders — Tesla, MicroStrategy, and Square — shall we?

  • Tesla: The electric vehicle company bought $1.5 billion in Bitcoin last quarter, at an average price of about $34,700 per coin, not far from its current price. Elon Musk has signaled that Tesla isn’t selling, but it probably isn’t buying, either.

  • MicroStrategy: The business intelligence software company has spent about $2.2 billion on Bitcoin, at an average price of $24,450. The company bought more last week and is still sitting on big gains.

  • Square: The payments company, led by the Twitter C.E.O. Jack Dorsey, bought two batches of Bitcoin for its treasury — $50 million in October at a price of about $10,600 and $170 million in February at a price of around $51,000. It took a $20 million impairment on its holdings last quarter, stemming from the drop in value from its most recent purchase. It doesn’t plan to buy any more, its C.F.O. said this month.


Barry Diller, when asked by Andrew on CNBC’s Squawk Box whether he thinks Disney’s C.E.O., Bob Chapek, has pushed his predecessor, Bob Iger, to the sidelines, as he suggested earlier in the interview. (And “not very nicely,” per Diller.)


The investment bank Lazard has hired William McRaven, the retired Navy admiral who led the U.S. Special Operations Command, as a senior adviser for its financial advisory business. McRaven oversaw the raid that killed Osama Bin Laden.

His hiring underscores business’ concerns about geopolitics. The pandemic has highlighted the potential business risks of global interconnectedness and China’s increasing assertiveness, among the many fault lines that multinational companies face.

McRaven is the latest financial outsider to join Lazard. Memorably, the firm hired the late Vernon Jordan, the civil rights leader with a gold-plated Rolodex, in 2000. “It’s not a place that is big on golfing,” said Peter Orszag, the head of financial advisory at Lazard, himself a veteran of the Clinton and Obama administrations. Bringing such people on board brings both intellectual “content” and deep relationships around the world, Orszag said.


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Discovery and AT&T: How a Huge Media Deal Was Done

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Deals are rarely smooth, and an anomaly with Discovery’s share price dovetailed with the negotiations. Discovery’s stock began to inexplicably rocket in February and March to $75 from $45 because of a convoluted trading scandal involving Archegos, a little-known private investment firm that bet big on Discovery and other companies via derivatives using billions in borrowed money.

With banks forced to buy shares to hedge their spiraling exposure to Archegos, Discovery’s market value jumped nearly 60 percent, for no obvious reason to outsiders. But by May, the stock had returned to where it was during Mr. Zaslav’s initial approach, and the two sides ultimately forged a deal that gave 71 percent of the new company to AT&T shareholders and 29 percent to Discovery.

Now, the trick was closing it before word could leak out.

One awkward conversation awaiting Mr. Stankey was with Jason Kilar, the former chief of Hulu tapped by AT&T, with great fanfare, just a year earlier to lead WarnerMedia. To mark the occasion of his first anniversary on the job, Mr. Kilar had agreed — with AT&T’s blessing — to be profiled by The Wall Street Journal. He invited a reporter in late April to interview him on the Warner Bros. lot in Burbank, Calif., unaware that across the country, his colleagues were feverishly working to close the deal.

At some point during the week of May 3, Mr. Stankey dropped the bomb: He informed Mr. Kilar that the company would soon change hands, and it was unclear what Mr. Kilar’s role might be. The 2,600-word Journal profile of Mr. Kilar, which included a quote from Mr. Stankey, was published on May 14, three days before the deal was announced.

Usually a cheerful presence on Twitter, Mr. Kilar didn’t bother sharing the article with his 37,000 followers. By the weekend, Mr. Kilar had retained the entertainment power lawyer Allen Grubman to start negotiating his exit.

A little after 7 a.m. on Sunday, Mr. Zaslav boarded a corporate jet at a small airport on the East End of Long Island, not far from his home, to head to AT&T’s Dallas headquarters to put the finishing touches on the deal. But just over an hour into the flight, word got out through Bloomberg’s black-and-orange terminal screens: “AT&T is in talks to combine content assets with Discovery.”

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