A deal for the acquisition of MGM Studios by Amazon is close to be achieved by the companies. MGM Studios is the co-owner of the James Bond franchise as well as other film and TV series. The deal is expected to be between $8.5 billion and $9 billion, claimed reports quoting information from people familiar with the matter.
Sources reportedly said that the two companies expect to announce the deal within a day or two.
If the deal is indeed announced, it would be the biggest acquisition of amazon since it had acquired Whole Foods in 2017 in a deal worth $13.7 billion. The Wall Street Journal reported earlier Monday that the deal could be announced this week.
Amazon’s Prime Video service is a competitor for Netflix, Disney and other streaming video services and the largest e-retailer of the world wants to acquire more television and film content to better compete in the video streaming industry. The plethora of content that MGM possess makes it a natural fit for any streaming service and therefore Amazon’s keen interest to acquire it.
It has been a number of years that the privately held MGM has been looking out for a buyer and strike a deal. The owners of MGM include Anchorage Capital, Highland Capital Partners, Davidson, Kempner Capital Management, Solus Alternative Asset Management and Owl Creek Investments. These are those funds that were given control of the company after it emerged from bankruptcy in 2010.
A number of very famous movie and TV franchises including Rocky, Legally Blonde, The Pink Panther and Stargate are owned by MGM. 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.
There were no comments on the issue available from MGM and Amazon.
There are more than 200 million Prime members worldwide with amazon currently and 175 million of those prime members used the video streaming service Prime Video and saw its content in the past year, company CEO Jeff Bezos recently told investors. The reported keenness of Amazon to seal this deal reflects the aim of the e-retailer to turn Prime Video into an even bigger habit for customers worldwide and make use of the one of the world’s “deepest libraries” of premium film and TV content that MGM is claimed to possess.
(Adapted from CNBC.com)