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| Amazon hopes to expand its entertainment business with the acquisition of MGM |
According to the latest media report, Amazon is discussing the acquisition of MGM, a well-known American film studio that would be the e-commerce giant's biggest move to expand its entertainment business.
Amazon spent several weeks negotiating a $ 9 billion acquisition of MGM. MGM Studios owns a large movie library, owns the Epix channel, and produces TV shows and reality shows.
The acquisition leverages Amazon movie studios and real-time Prime Video and IMDB streaming services.
Rumors have surfaced of Amazon and other tech giants' plans to acquire MGM studios for some time, but sources indicate that Amazon's interest in acquiring the studio has gone beyond the usual rumors.
It is reported that Mike Hopkins, Senior Vice President of Amazon Studios (Mike Hopkins) and Prime Video, will negotiate a deal and MGM President Kevin Ulrich (Kevin Ulrich) is negotiating.
Reuters reported in December 2020 that the movie studio wanted to sell and enter investment banks such as Morgan Stanley and LionTree LLC and had already officially started the sale.
News surfaced over the weekend about negotiations between Amazon and MGM. Amazon is said to be negotiating with MGM and the amount of the deal could range from $ 7 billion to $ 10 billion.
Industry insiders said: MGM officials are hoping for $ 9 billion, while others estimate it will be around $ 5 billion.
Amazon announced last week that it has chosen former CEO Jeff Blackburn (Jeff Blackburn) to leave the e-commerce giant and return to a new role in overseeing a unified global media and entertainment group, a sign of Amazon's growing focus on entertainment. . .
Amazon currently has over 200 million prime members worldwide, and Jeff Bezos recently told investors that 175 million people have streamed Prime Video content over the past year.
The company clearly wants to make Prime Video the primary behavior of its global customers, and the fastest way to do so is to use MGM's extensive database.
The Guardian reported in December that MGM has a library of 4,000 movies and 17,000 episodes of TV shows, especially the James Bond series, which is one of the most important movie franchises of all time.