Amazon Reportedly Negotiating A $9 Bn Deal To Buy MGM Studios News

Amazon Reportedly Negotiating A $9 Bn Deal To Buy MGM Studios

Author's avatar Clout News Desk

Time icon May 18, 2021

Amazon is reportedly in talks to buy the historic MGM Studios for $ 9bn (£ 6.35bn). 

MGM is one of Hollywood’s most famous studios, with its Leo the Lion logo and nearly a hundred years long history.

The sale will give the company’s Prime streaming service access to a large background catalog of icon content.

Iconic Catalogue Of Content

An Amazon spokesman told the BBC that the commercial giant had not commented on the rumors or speculation.

The reports came just hours after telecommunications company AT&T agreed to merge its WarnerMedia and Discovery division into a deal to build a new broadcasting company.

MGM Holdings, the parent company of MGM Studios, has reportedly been looking for a sale since the end of last year, according to media reports.

Purchase by Amazon for MGM Studios will mark a major step in its main streaming service.

MGM Studios has a huge catalog of movies and television shows covering decades ago, with Hollywood’s Golden Age to the present day. It is home to some of the biggest movies, including Ben-Hur and Wizard of Oz.

The Competitors

It recently produced the James Bond movie franchise and the series The Handmaid’s Tale TV.

Amazon and MGM have not yet responded to requests for comment from the BBC.

An agreement was reached on Monday to merge movie platforms Warner Bros. Entertainment, which owns the Harry Potter and Batman franchises, with Discovery’s home, cooking, environment and science.

WarnerMedia-owned HBO and HBO Max now have around 64 million subscribers worldwide, with hits such as Game of Thrones and Succession under its belt.

Discovery, whose portfolio includes Animal Planet and Discovery Channel, reaches more than 88 million U.S. homes, while its Discovery + broadcast service, launched in January, has 15m subscribers.

“This is a streaming arms race and AT&T is making an offensive strategic move to further bulk up its content in the battle versus Netflix, Disney, and Amazon,” Dan Ives from Wedbush Securities told the BBC.

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