Amazon is eyeing a $9 billion dollar deal to buy MGM Studios. The online powerhouse retailer and media conglomerate is already in the film industry with its own Amazon Studios. It wants to expand its brand in the film market by taking over MGM. (Metro-Goldwyn-Mayer).
Variety reports that other tech and media giants have been chomping at the bid into purchasing MGM for a long time. Now, Amazon is stepping up and ready to acquire the film company. It’s not a usual rumor, but the real official deal.
The deal is said to be being orchestrated by Mike Hopkins, senior VP of Amazon Studios and Prime Video, directly with MGM board chairman Kevin Ulrich, whose Anchorage Capital is a major MGM shareholder.
The New York Times reports that for Amazon, the media industry is a small piece of the online retail giant’s empire. In 2020, the company spent $11 billion on TV shows, movies and music for Prime services up 40% from the prior year.
MGM Holdings reported their revenue in 2021 was $403.3 million (up 27% year over year) and net income of $29.3 million (versus a net loss of $12.1 million in the year-earlier quarter).
MGM has been looking for a buyer for months on end. Apple and Comcast were considering buying it but kicked the idea to the curb and said it was only worth about $6 billion.
Amazon acquired the Whole Foods supermarket chain in 2017 for $13.4 billion; making it the biggest acquisition in Amazon’s history. It is unclear at this point in the game how much Amazon is willing to spend to acquire the film giant MGM or when and if the deal will be finalized. Doesn’t this sound like a real-life Monopoly board game?
Keep your eye on the prize Amazon! You just might get your wish!
Here’s the Bloomberg YouTube video:
