Amazon has been in talks to acquire MGM for about $ 9 billion, Variety reported May 17th.
Industry sources told Variety that the technology giant had been negotiating a deal for “weeks.” The information reported for the first time Monday that Amazon was in negotiations for a deal that could handle $ 7 billion to $ 10 billion.
Monday, In the Wall Street Journal he said the deal could be announced this week.
Mike Hopkins, senior vice president of Amazon Studios and Prime Video, is said to be organizing the deal directly with MGM board chairman Kevin Ulrich, according to the Variety report. Anchorage Capital of Ulrich is a major shareholder in MGM.
A sale of MGM to Amazon could signal the technology company’s move to expand its Amazon prime inventory streaming to include MGM’s wide range of big name movies and TV series. These include the James Bond, Hobbit, Rocky and Pink Panther franchises alongside “Legally Blonde” and “A Star Is Born.”
MGM also owns the Epix streaming service.
In the Wall Street Journal said in December that MGM was exploring a sale. The company had already begun a formal sale process, and prospective buyers have shown interest since last spring, according to The Journal report, which also cited people who say the company had a market value of $ 5.5 billion. of dollars.
Other companies have also been in the process of acquiring MGM, including ViacomCBS and Sony Pictures Entertainment.
Representatives from Amazon and MGM did not respond to a request for comment.
Like the rest of the film industry, MGM has been hit by the coronavirus pandemic, and he had refreshing the release of Bond’s next installment, “No Time To Die”.
Their revenues are down 3% year-on-year $ 1.5 billion in 2020, he said in his latest financial report. Its film segment was the worst, with a 83% drop in revenue from theatrical releases, as cinemas stopped or operated at a lower capacity.
But the company said it has been saved from its deep catalog, which includes about 4,000 movies and 17,000 TV episodes, and its chief operating officer, Christopher Brearton, said in the third-quarter earnings announcement. company that 2021 could be its biggest year for ever new content.
Amazon has slashed investment in its media division as well the demand for streaming is growing during the pandemic.
Last month, the Amazon streaming service has surpassed 200 million Prime members in the world – 175 million of which broadcast Prime Video content in the past year, according to Jeff Bezos, CEO of Amazon, which said streaming hours were more than 70% a year ago.
The company he said it made $ 7.6 billion – or about 7% of its total net sales – from its subscription services in the first quarter of 2021.
Additional reports from Katie Canales.