Video source: YouTube, CNBC Television
Amazon.com Inc (Nasdaq: AMZN) is in discussions to acquire MGM Holdings, the parent company of Metro-Goldwyn-Mayer Studios, for $9 billion, according to reports.
Variety reported Monday that the tech giant has been negotiating a deal for “weeks” and that talks are being handled by Mike Hopkins, senior vice president of Amazon Studios and Prime Video and MGM’s board chairman Kevin Ulrich.
A deal could enable Amazon to expand its Prime streaming service to include MGM’s vast library of movies and TV programming, The Information noted. It would also be Amazon’s biggest move yet to expand its entertainment content.
Besides the rights to several franchises, like James Bond, Rocky, Robocop and Pink Panther, MGM owns the Epix network and produces several TV shows such as “The Handmaid’s Tale,” “Survivor,” “Fargo” and “Shark Tank.” It is also the studio behind classics including “The Wizard of Oz,” “A Christmas Story” and “Gone with the Wind.”
MGM’s subsidiaries include United Artists, American International Pictures and Orion Pictures.
Neither Amazon nor MGM has commented on any possible deals.
According to CNN, Amazon has been looking to buy a big entertainment company to boost its streaming service in recent years.
The Wall Street Journal reported in December that MGM was exploring a sale and that several prospective buyers had expressed interest. At the time, sources told The Wall Street Journal MGM had a market value of $5.5 billion.
In 2016, MGM was close to a deal with several potential Chinese companies for around $8 billion, but negotiations fell apart.
Two years later, MGM’s former chief executive officer Gary Barber held talks with Apple Inc to sell the studio for more than $6 billion.
News of the possible acquisition follows AT&T’s announcement Monday that WarnerMedia would be spun off and combined with Discovery Inc, a move that would bring HBO, HGTV, Warner Bros, CNN and Food Network under one roof.
Source: Equities News