Home Production house Amazon to buy production house MGM Studios for $ 9 billion: report

Amazon to buy production house MGM Studios for $ 9 billion: report

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Amazon is looking to gain a huge stake again. According to a recent report, he may well sign the deal to acquire MGM Studios in Hollywood. MGM Studios is one of Hollywood’s oldest production houses. They are known for several live action movies as well as animated movies.

Amazon nears signing date for MGM Studios deal

Amazon’s deal with MGM Studios is reportedly worth nearly $ 9 billion, including debt. According to the Wall Street Journal, the American e-commerce giant will buy out the veteran production studio, making MGM Studios a valuable asset to the company. According to the website, the two could announce the deal as early as this week.

This deal with MGM Studios will mark the second-largest acquisition after the e-commerce giant bought Whole Foods for $ 13.7 billion in 2017. As of December 2020, MGM was valued at around $ 5.5 billion, including debt. . The studio’s stock price rose from $ 105 to $ 140 after news of its deal with Amazon broke online. As of March 2021, MGM had approximately $ 2 billion in debt.

News of this deal between MGM Studios and Amazon came to light shortly after AT&T announced it was combining its media assets with Discovery Inc and forming a new company. Discussions on the MGM Studios-Amazon deal continued on both sides. Talks have resumed in recent weeks, but there is no guarantee that they will reach an agreement.

What does this agreement bring for Amazon?

This agreement with MGM will give Amazon access to several classics such as Pink panther, singing in the rain, to name a few. Movies from before 1948 have already been sold to Warner Bros, including classics like The Wizard of Oz and Blown away by the wind.

Amazon has been eyeing the entertainment market for a long time now. From acquiring titles to releasing its own production, Amazon has also spent money acquiring licenses and live streaming rights. Currently he is preparing the television series based on The Lord of the Rings. The first season of the said series is estimated at $ 465 million.

MGM Studios had entered a CEO ban policy from 2018 after its then CEO Gary Barber was found in preliminary talks with Apple Inc for an estimated sale of $ 6 billion. Since then, MGM Studio has been run by the “CEO’s office” which includes executives from across the company.

(Image: Shutterstock)

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