Amazon is reportedly in discussions to buy the Metro-Goldwyn-Mayer movie studio, a move that would cost them US$9 billion, or AU$11.5 billion.
Originally reported by Variety, according to industry sources, the tech giant is currently in negotiations over a deal. MGM is responsible for a number of significant Hollywood franchises, including James Bond, as well as series like Rocky and The Hobbit.
Back in 2018, MGM fired Gary Barber, Chief Executive, over his talks with Apple about selling the studio.
The sale would significantly bolster the Amazon Prime Video library through both their film titles and their TV titles, which includes shows like The handmaid’s Tale, Teen Wolf, Fame, and Vikings.
Amazon is investing significantly into their media portfolio, and in 2020 spent US$11 billion on entertainment – including films, music and TV – for Prime.
In Australia alone, the company announced that they were investing $150 million in local entertainment. It is clear that Amazon is eager to consolidate its position in the entertainment landscape.
Variety reports that the deal is being led by Mike Hopkins, senior VP at Amazon Studios and Prime Video, with MGM board chairman Kevin Ulrich.
MGM has frequently been a target for takeover by a range of companies, but a deal has never been closed, making it one of the final major independent studios left in Hollywood.
