Enterprise

Amazon is acquiring MGM Studios for $8.5 billion

Amazon isn’t giving up on the streaming wars

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Amazon Prime Video is going head-on against Netflix, Apple TV+, and HBO Max. And to get a headstart, the e-commerce giant is acquiring MGM Studios for a whopping US$ 8.45 billion.

The film studio is behind the Rocky, Legally Blonde, and James Bond franchises.  Also included are more than 17,000 TV shows. Once the deal closes, the short-term impact will be unfettered access for Amazon’s Prime Video platform.

Bond is the fifth most valuable movie franchise of all time, with its 24 films to date grossing more than $7bn, behind only the sprawling Marvel Cinematic Universe. MGM’s library includes unscripted TV shows like The Voice and Shark Tank and modern TV shows like The Handmaid’s Tale and Vikings.

It is the second-largest takeover deal ever struck by Amazon. In 2017 it paid US$ 13.7 billion for the upmarket US grocer Whole Foods. Amazon said it’d “preserve MGM’s heritage and catalog of films” and provide customers with greater access to existing works.

However, this transaction isn’t uncommon. Disney’s US$ 66 billion acquisition of Fox assets gave the world’s largest media company the extra content muscle to successfully join the streaming wars with the launch of Disney+. It later went onto acquire India streaming company Hotstar for an undisclosed amount. Back then, Hotstar had close to 400 million monthly active users, and many of them view the free, ad-supported content.

Amazon doesn’t report any metrics about Prime Video’s usage, for instance, and the only reference to content expense is in a footnote to its financial statements. Hence it’s unknown how many active users it has. Since the streaming service is clubbed with Amazon’s e-commerce business, it’s also a very affordable purchase for a user.

“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios. “It’s very exciting and provides so many opportunities for high-quality storytelling.”

Enterprise

Google merges Pixel and Android teams into one superteam

Headed by Rick Osterloh

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For the longest time, Google kept Pixel and Android behind two different teams. While the Pixel team dealt with devices made by and for the brand, the Android team ships a product meant for brands outside of the company’s purview. However, the days of separation are at an end. Google is officially merging its Pixel and Android teams together.

In a shocking announcement, the company has confirmed that the teams handling hardware and software will fall under a single team headed by Rick Osterloh. Prior to the merge, Osterloh was the senior vice president of devices and service, which was Google’s hardware branch. He will now oversee both hardware and software.

Because of the new leadership change, Hiroshi Lockheimer, former head of Android, will now move on to other projects within Alphabet. Of note, the change is not harsh for Lockheimer. He and Osterloh had been contemplating on the merge for a while.

Now, why the change? As is the case with everything today, it’s all because of AI. Speaking to The Verge, Osterloh explains that the merge will help with “full-stack innovation.” With how technology is these days, it’s now impossible to develop AI without having a close eye on hardware, such as in Google’s AI developments for the Pixel camera. Merging the teams will help streamline development, especially when hardware is involved.

Despite the change, outside brands, like Qualcomm’s Cristiano Amon, remains confident of Android’s capabilities outside of Google. Just expect more AI coming out in the near future.

SEE ALSO: Google might offer satellite connectivity soon

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Enterprise

China starts banning AMD, Intel, and Windows

Only from government devices for now

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The ongoing trade war between the United States and China is putting a lot of companies out of business in one country. While all eyes are currently on America’s crusade against TikTok, China has launched a salvo of its own. The country has started banning AMD and Intel, starting with government devices.

Recently, as reported by the Financial Times, China has introduced a new rule that bans American chipsets and servers from government agencies. The new ban includes AMD, Intel, and Microsoft Windows.

In lieu of the now-banned brands, Chinese government agencies must use approved brands from a list of 18 Chinese manufacturers. Unsurprisingly, the list includes Huawei, another brand involved in the ongoing trade war. (Huawei is still banned on American soil.)

As with bans from America, China’s latest rules stem from a desire to implement national security. Both countries allege that using brands from the opposing side will open a potential avenue for transferring classified information.

Currently, the ban against the American chipsets are only affecting government devices. However, if it follows the same trajectory as Huawei and TikTok in the United States, a government-only ban might soon lead to an all-out ban on consumer devices. As TikTok is currently hanging in the balance, it’s unlikely that the trade wars will cool down anytime soon.

SEE ALSO: TikTok ban bill moves closer to becoming a law

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Enterprise

US sues Apple

For creating an illegal monopoly on smartphones

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So far, Apple’s greatest enemy has been the European Union. Months and months of claiming that the company engages in anti-competitive practices, the region has successfully caused Apple to drastically change a lot of things about the iPhone including the Lightning cable. Now, a new challenger wants Apple to answer for its supposed grip on the industry: the United States government.

Today, the Department of Justice is officially suing Apple for supposedly monopolizing the smartphone industry and stifling competition. The lawsuit alleges that Apple’s lineup of products prevent users from trying out other brands. For example, Apple limits how well a third-party smartwatch works on an iPhone, pushing users to go for an Apple Watch instead.

The lawsuit also includes an important pain point in Apple’s fight in Europe. It says that the company makes it difficult for iPhone users to communicate with Android users (and vice versa). Late last year, the company already committed to supporting RCS as a messaging standard, finally easing communication between the two systems. Their adoption has yet to arrive, though.

Though not as stringent as Europe, the American government is no slouch when it comes to questioning its own companies for pursuing anti-competitive practices. In the past, it went through Google and Spotify to protect the interests of its citizens. The lawsuit against Apple is no different, gathering signatures from sixteen states.

For Apple’s part, the company aims to get the case dismissed, alleging the lawsuit’s unfair scope of just the American people when it targets the entire world.

SEE ALSO: Apple opens first Developer Center in Southeast Asia

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