Why Amazon’s Latest Deal Could Be Just The Beginning…
A couple of weeks ago, e-commerce giant Amazon (Nasdaq: AMZN) announced that it is acquiring MGM studios in an $8.5 billion deal. If you’re an Amazon customer, that means you’ll likely be able to watch James Bond or Rocky movies on your Prime video service (along with potentially thousands of other titles).
The storied movie studio has the rights to more than 4,000 films. It will also help Amazon produce new movies and TV shows more efficiently, and give it more ammo in the streaming wars.
There’s More Where That Came From…
It’s kind of surprising when you think about it, but Amazon just really hasn’t made many mega-deals over its life as a company.
The deal will be Amazon’s second-largest, only behind the 2017 takeover of the Whole Foods organic grocery chain. And this latest deal could be a sign of more to come.
Nathan Slaughter, Chief Investment Strategist of Takeover Trader has been making the case for the past few months that companies will be starving for new deals as we emerge from the pandemic. All the ingredients are in place… Low interest rates, big tech companies with hundreds of billions in their war chests, smaller players with exciting products who need a bigger partner to unlock their true potential…
In fact, among the winning trades Nathan and his team have identified since first launching Takeover Trader last year is a logistics firm that would fit right in with Amazon.
Among its many assets, the company owns 1,500 warehouse facilities, including dozens of coveted “last-mile” hubs strategically located within a short drive of 90% of the U.S. population. I referenced this company a couple of weeks ago – and the fact that it’s up 120% since Nathan’s original recommendation.
The company in question is clearly worth more than the sum of its parts, which is why management is putting the finishing touches of a spinoff. Once that deal is completed, it’s very possible that Amazon (or another large company) may see the strategic potential and want to scoop up the restructured company. As Nathan told his Takeover Trader subscribers, “This ‘uncoupling’ will create two independent businesses that are powerhouses in their respective fields – both of which would then be more likely acquisition targets due to their smaller size.”
Now, this is just one of several areas of opportunity that Amazon could be looking at over the next few months. After all, the company has $73 billion in cash sitting on its balance sheet — and it’s growing with each passing quarter. But whether Amazon acquires this company or another one, Nathan and his team believe it’s only a matter of time before firms like Amazon, Microsoft, Apple, and a host of other firms go on the hunt for big deals.
When that day comes, it will deliver a windfall for shareholders in a matter of days. In the meantime, Nathan has been busy identifying potential targets that are already up big-time (remember: the same reasons that make a good investment for us are similar to what an acquirer wants). Those include a travel search company that’s already up 134%, a major player in the streaming TV wars that’s up 223%, and more…
But one of the biggest areas of M&A activity coming out of this pandemic will be healthcare. And that’s what Nathan and his team have spent the past few months researching in depth…
While Nathan and his team believe we’ll see a wave of deal-making activity as we emerge from the pandemic, they think healthcare will see unprecedented levels of activity. That’s why they have been putting the finishing touches on a brand-new report that will detail some of the most exciting opportunities they’ve seen in this field in years. And starting tomorrow, you’ll hear more from Nathan about it. So stay tuned.
In the meantime, have you been wondering about Elon Musk’s latest project?
If you haven’t heard about it, you’ll want to know more — because it could make early investors a killing…
Our team just released a report on Musk’s latest venture, which promises to be the “next investment frontier” in tech. It’s already rolling out across the globe, and it’s going to change the lives of millions of people (and investors a lot of money in the process).
But there’s just one problem… It’s currently “off limits” to regular investors… Fortunately, we’ve discovered a little-known “backdoor investment” that can get you in on the ground floor, TODAY. (Without this “secret partner,” it will never get off the ground…)