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Amazon negotiating deal to buy MGM Studios for $9 billion

Amazon is reportedly a variety of weeks into negotiations on a deal to purchase MGM, the Hollywood studio behind the “James Bond” franchise, for between $7 billion and $10 billion.

The legendary studio — whose film and TV catalog accommodates all of the issues from “Silence of the Lambs” to “Shark Tank” — has been up on the market since late remaining yr, and has prolonged been seen as a attainable objective for a tech massive.

However in accordance to evaluations, the Seattle-based e-tailer’s curiosity in snapping up the studio has become important, as Amazon’s Prime Video streaming service faces increasingly stiff opponents with fast-growing rivals like Netflix and Disney+.

The deal is alleged to be orchestrated by Mike Hopkins, senior vp of Amazon Studios and Prime Video, instantly with MGM board chairman Kevin Ulrich, whose Anchorage Capital is a severe MGM shareholder, Selection stated Tuesday.

Amazon didn’t immediately reply to requests for comment.

Amazon is reportedly in talks to scoop up MGM, whose Hollywood blockbusters include the
Amazon is reportedly in talks to scoop up MGM, whose Hollywood blockbusters embody the “James Bond” franchise.
Alamy Inventory Picture

MGM explored a sale late remaining yr and tapped funding banks Morgan Stanley and LionTree and commenced a correct sale course of. On the time, the corporate had a market value of spherical $5.5 billion based totally on privately traded shares and along with debt.

The studio, which contains Oscar-winning flicks like “Rocky,” “Dances with Wolves” and “Rain Man,” along with reveals like “The Handmaid’s Story” and “Vikings,” turned the subject of speculation this weekend. The Info reported Monday that Amazon was in talks a couple of potential deal for MGM, which can run between $7 billion and $10 billion. Some sources put the valuation at between $9 billion and $5 billion.

MGM's hits also include the
MGM’s hits moreover embody the “Rocky” movies starring Sylvester Stallone.
Alamy Inventory Picture

The knowledge comes as Amazon is welcoming once more Jeff Blackburn to run its leisure unit. A seasoned Amazon vet who understands the Hollywood panorama, Blackburn shocked commerce insiders when he returned to the corporate after solely a five-week stint working inside the enterprise capital world.

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