Amazon wants to expand its entertainment business by purchasing MGM
take place a company Amazon in discussions to acquire the famous American movie studio MGM, in what would be the e-commerce giant’s biggest step to date in expanding its entertainment business, according to To report New from The Information.
Amazon has spent weeks negotiating a deal to acquire MGM for $ 9 billion, studio MGM owns a major movie library, owns the cable channel Epix and produces TV and reality shows.
The acquisition strengthens Amazon’s movie studio, Prime Video and IMDB live streaming services.
Rumors have appeared about the intention of Amazon and other tech giants to acquire MGM studio for some time, but sources indicated that Amazon’s interest in acquiring the studio has taken a new turn beyond the usual rumors.
Deal talks are said to be taking place between Mike Hopkins, Senior Vice President at Amazon Studios and Prime Video, with MGM Chairman Kevin Ulrich.
Reuters reported in December 2020 that the movie studio was exploring a sale and tapping into investment banks, Morgan Stanley and LionTree LLC, and had begun an official sale.
News of Amazon’s talks with MGM began to surface this weekend, and reports said Amazon is in talks about a possible deal with MGM, which could range from $ 7 billion to $ 10 billion.
Industry sources said: MGM reps want $ 9 billion, while others see it worth about $ 5 billion.
In a sign of Amazon’s increased focus on entertainment, the company announced last week that it had chosen Jeff Blackburn, the former CEO who left the e-commerce giant and returned to it with a new position, to oversee a unified global media and entertainment group.
Amazon currently has more than 200 million Prime members worldwide, and Jeff Bezos recently told investors that 175 million of those streamed Prime Video content in the last year.
Obviously, the company wants to turn Prime Video into an essential behavior for its customers around the world, and the quick way to do that is to take advantage of MGM’s extensive library.
The Guardian reported in December that MGM has a library of 4,000 films and 17,000 episodes of televised shows, and the James Bond series, in particular, represents one of the most important franchises of films ever made.
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