Does Amazon Video have its sights set on Lions Gate?
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Does Amazon Video have its sights set on Lions Gate?

Things are heating up in the Streaming Video on Demand (SVOD) market. And content is the key. At this year’s Emmy Awards, which recognise the best small screen offerings in the world, SVOD providers won big. Amazon took home a slew of awards, including the coveted (and never-before-won by a streaming service) best original comedy. Netflix did even better, matching serial champion HBO – long considered the home of TV’s greatest hits – award for award. With Netflix spending as much as $8 billion on programming this year (more than any studio in the world), is Amazon eyeing up a major acquisition?

Amazon and Netflix have been some of the market’s top performers so far this year

graph 1002 amazon

SOURCE: Yahoo Finance

Lions Gate Entertainment Corp. is one of Hollywood’s last big independent film studios – and it’s already in bed with Amazon. The two companies are working together to bring the former’s Starz network to international audiences via Amazon Prime Video, and if it goes well, some investors have speculated that the Ecommerce giant will opt to purchase Lions Gate. And why not? The studio is top tier, having produced hits like “The Hunger Games” and Netflix’s ambitious content plans are a constant threat.

That is what John Kornitzer, president of Kornitzer Capital Management, seems to think. And he should know – he’s Lions Gate’s fourth biggest investor. He recently said that a successful collaboration between the companies could prompt a takeover, as Amazon looks to boost its film and TV services – but he added that Amazon is not the world’s only prospective buyer (not by a long shot). And that Lions Gate had other options – such as an acquisition of its own.

FBN Securities’ Rob Routh made the following comment over Kornitzer’s speculation: “It’s not like the rumour mill type of investor, and they’ve owned the stock for as long as I can remember. I think those folks are considered straight shooters. There are a zillion potential options, the only thing we know is something is going to happen. The question is will [Lions Gate] be predator or prey?"

Disclosure

Dominion holds Amazon and Netflix in its Global Trends Ecommerce Fund.


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