Amazon to buy MGM for $9billion to turn ‘Rocky’ and ‘James Bond’ studio into streaming giant in largest ever acquisition
AMAZON is reportedly close to sealing a deal to acquire the Hollywood giant MGM Studios for a price of $9 billion, insiders said, which would make Amazon an even larger competitor to other web-streaming platforms.
Sources knowledgeable of the private talks said an agreement is expected to be announced this week should the deal go through, which would mark Amazon's second-largest acquisition in its history after purchasing Whole Foods for $13.7 billion in 2017.
Those in the know of the deal told the the two parties are likely to decide on a number between $8.5 and $9 billion.
Although there are no guarantees in the dealmaking, an agreement could come as soon as Tuesday, the sources said.
, the umbrella company of MGM Studios, was valued at around $5.5billion last December.
The privately traded company’s stock price skyrocketed recently from around $105 a share earlier this month to $140 a share on Monday after discussions about the deal were disclosed.
Both companies have been talking about this deal irregularly since the start of 2021.
MGM has reportedly been seeking a buyer for several years after it emerged from bankruptcy in 2010.
The company's current owners include Anchorage Capital, Highland Capital Partners, Davidson, Kempner Capital Management, Solus Alternative Asset Management and Owl Creek Investments.
MGM Holdings studio has a library of various productions, including the James Bond franchise - widely considered the most valuable asset in contemporary Hollywood.
MGM Holdings studio is also known for running classic productions such as Singin’ in the Rain, Rocky, and The Pink Panther.
The studio owns popular reality TV shows like Shark Tank, Survivor, The Real Housewives series and The Voice. Likewise, it owns studios which produced current TV shows like Fargo and The Handmaid's Tale.
It also owns premium pay-TV service Epix, which was valued at $1.3 billion in 2017.
Prime, Amazon’s video streaming service, has been competing with streaming giants like Hulu, Disney Plus, and Netflix who all saw a surge in viewer subscriptions amid the pandemic.
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