Amazon Reportedly In Talks to Buy MGM (Updated)
The online retail giant has been looking to boost its film studio and Prime Video services, according to reports.
Updated on 5/26/21 at 10 a.m. : AP has confirmed the acquisition, which it says will cost Amazon $8.45 billion. The report adds that the deal is "subject to customary approvals." Even if the final sale goes through, Amazon will no doubt come under further scrutiny from legislators already concerned about whether the company is engaged in anti-competitive practices.
Amazon is looking to acquire MGM which could be valued between $7 billion and $10 billion, says The Information, citing a person familiar with the situation.
MGM, known for its iconic logo of a roaring lion, owns the James Bond franchise, titles like Rocky and Pink Panther, as well as the Epix cable channel. The company also co-produces The Handmaid’s Tale and popular reality shows like Shark Tank and Survivor.
Amazon has been scouting a big entertainment purchase for years according to several sources. In 2018, Amazon was interested in buying Landmark Theaters, according to Bloomberg. Last year, the tech giant was looking to purchase AMC Theaters.
However, sources point out that purchasing a studio would be more beneficial than a theater chain for Amazon as they would allow the studio's TV shows and films to rollout on Amazon's Prime Video.
The reports of the possible purchase come as the streaming landscape is heating up. On Monday, AT&T announced it would spin off WarnerMedia to be combined with Discovery, and Netflix is investing billions more into its own library of movies and shows.
Amazon also reported growth in its latest earnings report: Prime Video now has over 200 million paid subscribers and streaming hours were up more than 70% since a year ago.
Amazon did not respond to requests for comment and MGM could not be reached, according to CNN.