View Full Version : What if Microsoft bought MGM or Lionsgate?


wnorris
08-21-07, 10:44 AM
Just an interesting what if...

It seems more and more like Microsoft is trying to compete with Sony. As they venture off into more consumer electronics items, they really are becoming a major Sony competitor (MS Games vs Sony Games, MS Software vs Sony Soft, Xbox vs PS3, Zune vs MP3 in general, etc, HD DVD vs BD, etc.). Sony got into the movie business by just buying a studio. Instant movie business. How long before Microsoft makes the same move, just to compete with Sony?

To me, Lionsgate or MGM would be Microsoft's best options. Lionsgate is relatively small (compare to Sony, Uni, WB, etc.), but has a decent catalog of older movie, and have made some very popular movies in recent years. It also has something of an Animation division (think all the Avengers, Iron Man, Dr. Stranger, Hellboy, etc. movies). In terms of $$$, Lionsgate would be an afforable entry that could still be competive with the majors.

MGM is the other obvious choice. When it was purchased a few years ago (around 3 or so wasn't it), it was purchased primarily by venture capitalists. Their goal was to take an MGM that was loosing money and value, stop the bleeding, start posting profits, then sell the studio for a nice profit. Well, MGM has started it's turn around, and is already operating back in the black I think. I think most of these types of venture capitalists want a 5 year turn around, so I expect MGM to get sold again in another 2-3 years. This could be a prime opportunity for Microsoft.

Since this is something I think MS will do anyway within the next 5 years (they can also use it to make exclusive content for Live), what if they just went ahead and did it now. How would the format war be affected if MS bought a currently BD exclusive studio, and flipped it to HD DVD exclusive?

I don't think it is too far fetched to consider.

rover2002
08-21-07, 10:49 AM
Just an interesting what if...

It seems more and more like Microsoft is trying to compete with Sony. As they venture off into more consumer electronics items, they really are becoming a major Sony competitor (MS Games vs Sony Games, MS Software vs Sony Soft, Xbox vs PS3, Zune vs MP3 in general, etc, HD DVD vs BD, etc.). Sony got into the movie business by just buying a studio. Instant movie business. How long before Microsoft makes the same move, just to compete with Sony?

To me, Lionsgate or MGM would be Microsoft's best options. Lionsgate is relatively small (compare to Sony, Uni, WB, etc.), but has a decent catalog of older movie, and have made some very popular movies in recent years. It also has something of an Animation division (think all the Avengers, Iron Man, Dr. Stranger, Hellboy, etc. movies). In terms of $$$, Lionsgate would be an afforable entry that could still be competive with the majors.

MGM is the other obvious choice. When it was purchased a few years ago (around 3 or so wasn't it), it was purchased primarily by venture capitalists. Their goal was to take an MGM that was loosing money and value, stop the bleeding, start posting profits, then sell the studio for a nice profit. Well, MGM has started it's turn around, and is already operating back in the black I think. I think most of these types of venture capitalists want a 5 year turn around, so I expect MGM to get sold again in another 2-3 years. This could be a prime opportunity for Microsoft.

Since this is something I think MS will do anyway within the next 5 years (they can also use it to make exclusive content for Live), what if they just went ahead and did it now. How would the format war be affected if MS bought a currently BD exclusive studio, and flipped it to HD DVD exclusive?

I don't think it is too far fetched to consider.

I think $ony will implode within 2 years if they don't have a major reshuffle at the top.

mperr
08-21-07, 10:50 AM
Microsoft buying a media company is certainly not far fetched with their XBLM movie service taking off and their $1B+ profit a month.

But I am not sure this is likely as Microsoft like to charge transaction fees for delivery of someone else's content. Creating content is expensive and risky. Distribution/delivery fees are more stable and profitable with volume. So this could go either way, really.

It all depends on their business goals and how they see Microsoft in 5 years.

JaylisJayP
08-21-07, 10:51 AM
i hope they do...i'd love to see Sony finally go away.

A.VOID
08-21-07, 11:27 AM
MIcrosoft already bought NBC

They are also in bed with Universal.

Not sure they will "buy" more, but they may pay off.

kizzo
08-21-07, 11:35 AM
Microsoft didn't purchase NBC.. They teamed up with NBC to launch a news channel called MicroSoft NBC(MSNBC). In 2005 NBC Universal purchased Microsoft's stake in MSNBC, and now NBC Universal owns the entire network. But they kept the name(it was rumored that it would be renamed NBC News Channel).

The only relationship Microsoft has with NBC Universal is running the MSNBC website.. it is still a joint venture.

mstrbass2000
08-21-07, 11:51 AM
if this was the plan ,they would buy both lionsgate and mgm at the same time

microsoft is currently looking to jump start their stock (under performing for 3 yrs) this move while costly would instantly give them content and another business to deversify their company further ,the content would then be distributed to both the zune and xbla ,it would also get them back into the headlines "possibly jump starting the stocks performance again" all they would need after that is to buyout a record label and turn into a high powered media company

i bet if this we're to happen ,there stock would go thru the roof ,which in turn makes the purchases for free since their market cap is every 1 dollar move in stock price = 1.5 billion in market cap

this would also shake up the mediots because they would finally see a company that could finally put the "dominating the living room theory in play"

we hear a lot of talk about this battle but the two main players are sony and microsoft but both are missing pieces

sony has content (movie studio/music)and a medium (playstation/tv's/electronics/pc) but they lack the software and delivery knowledge
microsoft has the software and delivery methods (msn,xbla,zune,software) but they are behind on medium (zune/xbox/pc) and content

this is not so far fetching a move (buying studios) it is a logical step ,imo

Goatse
08-21-07, 11:54 AM
i hope they do...i'd love to see Sony finally go away.

what for?? they make great products. Stop being a lemming.

A.VOID
08-21-07, 11:54 AM
Microsoft didn't purchase NBC.. They teamed up with NBC to launch a news channel called MicroSoft NBC(MSNBC). In 2005 NBC Universal purchased Microsoft's stake in MSNBC, and now NBC Universal owns the entire network. But they kept the name(it was rumored that it would be renamed NBC News Channel).

The only relationship Microsoft has with NBC Universal is running the MSNBC website.. it is still a joint venture.

Thanks!

Schils
08-21-07, 12:11 PM
what for?? they make great products. Stop being a lemming.

I agree. I'll never understand that mentality, Sony makes excellent stuff, why all the hatred towards them? Look, I own a Tosh HD DVD player and have no plans on going Blu anytime soon, but christ, the Sony stereo in my car, the speakers in my movie rig/setup, etc, etc, are all Sony and are outstanding pieces. Even if BR were to fail, I doubt the mighty "Sony" is going anywhere, nor should they...no need to wish ill will on them - Blu Ray maybe, but Sony in general? C'mon! I don't think I've ever seen BD/Sony fans hating on "Toshiba" - HD DVD, sure, but not "Toshiba."

Ian Fleet
08-21-07, 12:17 PM
It's interesting how Sony bought a Studio and took a gamble on incorporating the Blu-ray player to the PS3 and as a result pulled Microsoft, one of their competitor's in gaming, into the HD video market.
With Microsoft's addon HD-DVD player not incorporated into their xbox elite I thought they were uncommitted to this format war and move more towards video downloads.
Now with this reversal of Paramount I'm not so sure.
I doubt MS would ever buy a movie studio but I certainly wouldn't put it past them to offer cash incentives to format neutral studios just to hurt their competitors and as a result, monopolize the gaming industry a little more.

Don Borvio
08-21-07, 12:29 PM
I think MS is still releasing another version of the 360 with the HD DVD player built-in. Not sure if that's confirmed or not, but MS could pretty end the format war if Lionsgate and MGM were scooped up. It leaves Sony and Fox together, and Warner would probably give up on Blu-ray soon enough.

Kinda pie-in-the-sky, but it could happen, maybe.