Amazon Edges Closer to Acquire MGM Studios for Nearly $9-billion

Amazon.com Inc is nearing a deal to acquire Hollywood Metro-Goldwyn-Mayer (MGM) Studios, the co-owner of the James Bond franchise and other film and TV series, for between $8.5 billion and $9 billion including debt, according to people familiar with the matter a pact that would turn a film operation founded in the silent era into a streaming asset for the e-commerce giant.

An agreement could be announced as early as this week, people close to the situation said, assuming the talks don’t fall apart at the last minute. Amazon stock climbed 1.3%, closing at 3,244.99 on the stock market today. During after-hours trading Amazon stock was up a fraction. Entertainment giant MGM Studio owns the rights to 4,000 films and 17,000 hours of TV content.

It would mark Amazon’s biggest acquisition since it bought Whole Foods in 2017 for $13.7 billion. The Wall Street Journal reported earlier Monday that the deal could be announced this week. Amazon is interested in acquiring more TV and film content for its Prime Video service as it competes with Netflix, Disney, and other streaming video services. MGM is a natural fit for any streaming service because of its plethora of content.

MGM Studios

MGM, which is a private company, has been seeking a buyer for several years. Its owners include Anchorage Capital, Highland Capital Partners, Davidson, Kempner Capital Management, Solus Alternative Asset Management, and Owl Creek Investments — funds that took control of the studio when it emerged from bankruptcy in 2010.

MGM owns a number of famed movie and TV franchises, including Rocky, Legally Blonde, The Pink Panther, and Stargate. It also owns a studio, which has made more current hit TV shows, including “The Handmaid’s Tale” and “Fargo.” MGM owns a number of popular reality TV shows, including “Shark Tank,” “Survivor,” “The Real Housewives” series and “The Voice.” MGM also owns Epix, a premium pay-TV service valued at about $1.3 billion in 2017.