Amazon (NASDAQ:AMZN) is rumored to be in talks to acquire MGM — the picture studio, not the gaming company. But muddiness o'er nearly similar fellowship names sent MGM Resorts International (NYSE:MGM) gunstock soaring tardily Monday.
As the chart below indicates, bewildered traders sent shares of the largest operator on the Las Vegas Strip higher in today’s after-hours session, with the stock up trading as high up as $41. That set it within striking space of the 52-week mellow of $42.74. Traders afterward realized the gaffe and rapidly departed the gaming name, sending it endorse infra $39 at this writing. Shares of MGM Resorts closed in(p) at $38.75 during normal trading hours.
The Information broke a story earlier this afternoon indicating Amazon River is mulling a bleed at MGM – the picture show studio – inwards what would be the e-commerce giant’s in vogue(p) bear on into entertainment. The Hollywood fellowship is well-known as the rest home to the James Bond franchise, but it has other in demand(p) titles, including the Rocky Series, and owns the Epix channel. It also produces several cablegram and streaming shows, as comfortably as pop realness fare, such as Shark Tank and Survivor.
As for MGM — the gaming society — even out with the after-hours retreat, the casino behemoth is single of the better-performing large-cap gaming equities this year, with an admirable 23 percent gain.
The MGM’s Once Had Ties
There was a clip when the Las Vegas and Hollywood sleeves of MGM were one.
In 1969, the tardily Kirk Kerkorian acquired 40 percent of studio Metro-Goldwyn-Mayer, later bringing the iconic firebrand to Sin City. That lead to the creation of corporate entities MGM Grand Inc., MGM Mirage and, ultimately, MGM Resorts International.
Tracinda Corp. — a holding accompany for Kerkorian’s estate for his ii daughters — at 1 point owned 16.2 percent of the gaming company. That bet was pared in subsequent years, and was liquidated only in September 2019.
Last year, Kerkorian’s acres donated $4 million to MGM Resorts Employee Emergency Ulysses S. Grant Fund, which was localize up to assist workers displaced by the coronavirus pandemic.
Amazon, Gaming Speculation
Monday’s Wall Street gaffe aside, in that location has been some speak near Amazon River eventually entering the wagering space. But it’s simply speculation.
Much of that clack is driven past the fellowship holding an 11-year trade with the NFL to stream 15 games a year.
Amazon Web Services (AWS) — the world’s largest cloud computing outfit — is also the provider of next propagation analytics and statistics to the NFL, prompting some talking the accompany could relocation into sports betting data at some point. But that’s just now speculation, too.
The Seattle-based company hasn’t publically commented on any plans to relocation into the cassino or sports wagering businesses.