Amazon may be close to buying MGM for US$9 billion

As confirmed by several industry players to the U.S. media Variety, Amazon is currently negotiating the purchase of the historic MGM.

The deal, which would be closed for a figure close to 9 billion dollars, would be orchestrated by Mike Hopkins, senior vice president of Amazon Studios and Prime Video; and Kevin Ulrich, chairman of the board of MGM. Although both companies have not wanted to make any comment alluding to these rumours, the truth is that we know that the studio has been for sale since December 2020.

MGM, the Metro Goldwyn Mayer, owns among its main franchises the sagas of James Bond, The Hobbit, Rocky/Creed, RoboCop and Pink Panther, as well as 17,000 episodes of Stargate SG-1, Stargate Atlantis, Stargate Universe, Vikings, Fargo, The Handmaid’s Tale, Fame, American Gladiators or Teen Wolf. The studio also has several unscripted shows in its portfolio such as The Voice, Survivor, Shark Tank and The Real Housewives of Beverly Hills.

Amazon Prime, in growth

With more than 200 million subscribers worldwide, Amazon Prime Video continues to make moves to consolidate its presence in the VOD platform market. The acquisition of MGM could mark a before and after, as well as the recent signing of Jeff Blackburn, who after a stint at other companies has returned to Amazon Prime Video to oversee the media and entertainment division.

Prime is currently one of the fastest growing segments in Amazon’s business model. In 2020 alone, the company invested $11 billion in TV series, movies and music for all of the company’s media divisions.