Amazon is reportedly poised to buy the vaunted Hollywood movie studio MGM for $9 billion as streaming competition intensifies day by day.
The New York Times and the Financial Times reported on the talks yesterday.
The renowned film studio, a staple of Hollywood’s Golden Age, is characterized by its Leo the Lion logo and nearly a century of history. With its sale to the tech giant, Metro-Goldwyn-Mayer (MGM) would give the streaming service Amazon Prime a vast catalog of iconic content from the past ten decades.
MGM has produced classic films, including the “James Bond” and “Rocky” film franchises.
The Information, citing a source familiar with the matter, said that the studio could be valued at between $7 billion and $10 billion. According to media reports, MGM Holdings, the parent company of MGM Studios, had been exploring the sale since late 2020.
However, Amazon and MGM declined to comment on rumors or speculation.
For years, reports have circulated that Amazon has been planning to buy a large entertainment property to bolster its video streaming service. Bloomberg said in 2018 that the tech giant had been trying to purchase specialty theater chain Landmark Theaters.
Moreover, the Daily Mail suggested that Amazon (AMZN) could buy AMC Theaters (AMC) last year.
The company’s acquisition of MGM Studios would mark a significant step for its Prime streaming service. Some of the studio franchises have a proven record of success at the box office, including “James Bond,” which is considered one of the most lucrative series in the industry. “Spectre,” released in 2015, grossed nearly $900 million worldwide.
News of the possible purchase comes after telecommunications giant AT&T (T) agreed to combine its WarnerMedia unit with Discovery.
The deal to spin off and combine WarnerMedia, CNN’s parent company, with Discovery (DISCA), seeks to create a new streaming giant and unite Warner Bros, HBO, Food Network, and HGTV under one roof.
Amazon does not usually publish many details about Prime Video
However, during its most recent earnings report, the company revealed that the service has more than 200 million paid subscribers. It also added that Prime Video streaming hours had seen a 70% increase year over year.