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Monday, 24 May 2021

Reports: Amazon Deal To Buy MGM Studios For $9 Billion Nearly Done

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Reports: Amazon Deal To Buy MGM Studios For $9 Billion Nearly Done

According to numerous reports Amazon is very close to a deal to buy MGM Studios and its film library for nearly $9 billion with debt. This would significantly alter the streaming wars and give Amazon a huge base of over 4,000 titles, 17,000 hours of TV as well as the Epix pay-TV network. An agreement is expected this week unless their is a last-minute hitch.

Some on Twitter have concerns about Amazon’s growing power. Journalist Dan Primack says that a top Amazon exec told him: “We’ll keep doing big deals until one actually gets blocked, instead of just political rhetoric.”

Amazon talks with MGM confirm something a top Amazon corp dev exec told me just before the pandemic, when I asked if antitrust concerns would slow big acquisitions:

(paraphrased) "We'll keep doing big deals until one actually gets blocked, instead of just political rhetoric."
— Dan Primack (@danprimack) May 24, 2021

Another person tweeted: Now that Amazon is buying MGM Studios they’ll be in charge of the entire food supply with Whole Foods, media consumption and propaganda at the Washington Post, and now all Hollywood misinformation. What could possibly go WRONG??? Monopolies in America are Evil.

The deal potential was originally reported by The Information last Monday. Numerous additional news reports were posted in the last hour:

The talks between Amazon and MGM have been on-again, off-again since the start of this year, people close to both companies said. Amazon and MGM have been in exclusive talks in recent weeks, the people said. The MGM board was briefed on the matter Sunday night, a person close to the situation said. There are no guarantees they will ultimately reach an agreement. An acquisition of one the most iconic entertainment brands in the world would be the most aggressive foray yet by a tech giant into Hollywood.
Wall Street Journal

Chatter that Amazon and other tech and media giants have been sniffing around MGM has circulated for some time. But sources indicated that Amazon’s interest in acquiring the studio has taken on a new tenor beyond the usual rumor mill. 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.
Variety

In the wake of Monday’s news that Amazon is making a go at MGM, it’s been radio silence. As of Friday, we hear that both sides remain actively in talks and want to get the deal done soon, but the time frame remains undefined.
Deadline

Amazon.com Inc. is nearing a deal to buy the Hollywood studio MGM Holdings for almost $9 billion, said people familiar with the matter, a pact that would turn a film operation founded in the silent era into a streaming asset for the e-commerce giant.
Fox Business