Reader TTS

Amazon has assigned a value of $3.4 billion to MGM‘s film and TV library, which it acquired along with the rest of the fabled Hollywood company in a deal that closed last March. Along with

the film and TV content, Amazon in an SEC filing this morning pegged the goodwill value of MGM at $4.9 billion, most of which it is allocating to its North America segment. Goodwill, for

accounting purposes, refers to less-tangible assets like a brand name, customer relationships or proprietary technology. In other words, it is what will enable Amazon to continue making

streaming projects with the imprimatur of Leo the Lion. The numbers appeared in a filing related to the company’s first quarter financial results. (Companies typically issue an earnings

release with select numbers and then follow up later with a more thorough, official accounting for the SEC.) Amazon’s lackluster quarterly report yesterday, which included an unexpected loss

and a soft outlook for the current quarter, has rattled investors and sent the tech giant’s stock down 12% so far today. Amazon notes in the filing that the MGM deal closed March 17. It

spent $6.1 billion in cash and assumed $2.5 billion in debt, repaying the debt immediately after the deal close. WATCH ON DEADLINE Key library titles and franchises in the MGM and United

Artists stable include film and TV franchises like James Bond (though the rights are limited), _Stargate_, _Creed,_ _Legally Blonde_, _Shark Tank_ and _The Handmaid’s Tale_. Along with the

film and TV content, Amazon pegged the goodwill value of MGM at $4.9 billion, most of which it is allocating to its North America segment. Goodwill, for accounting purposes, refers to

less-tangible assets like a brand name, customer relationships or proprietary technology. Not surprisingly for a company worth nearly $1.3 trillion, the MGM deal was deemed “not material” to

Amazon’s overall financial results, the filing said. No pro forma results of operations were included with the company’s full quarterly report. As with other tech companies like Apple,

Amazon’s video operations have not historically been broken out as separate line items in financial reports. Acquisition-related costs were “not significant,” the filing added. The MGM

acquisition is the largest purchase to date of a traditional film or TV operation by a digital player. Earlier this week, MGM motion picture group chairman Michael De Luca and president Pam

Abdy announced their departures in a significant shake-up. As it looks to leverage the properties in the library and set forth a strategy for the studio, Amazon has thus far held its cards

fairly close to the vest.