According to Variety, Amazon has been negotiating a contract to buy MGM for about $9 billion for several weeks.
According to the outlet, claims that Amazon and other tech giants were involved in purchasing MGM have been circulating for a while, but this recent news is more than just rumors. Amazon Studios and Prime Video senior VP Mike Hopkins, as well as MGM board chairman Kevin Ulrich, have been linked to the move.
MGM was confirmed to be searching for a buyer in December 2020 but neither company responded to the story with an official statement.
MGM is reportedly asking for a price of about $9 billion, with the company recently rumored to be valued relatively low as $5 billion.
Another recent news indicating that Amazon is stepping up its entertainment efforts was the announcement that former high-ranking executive Jeff Blackburn will be returning to the company in a new capacity as the director of a multinational media and entertainment division.
The alleged sale however adds up citing Amazon’s claim of 200 million Prime members worldwide. With a portfolio as wide as MGM the sale will be most beneficial to both parties.
According to reports, Amazon invested $11 billion in 2020 on TV shows, songs, and movies for its Prime services. That’s a 40% increment from what it spent on the same market division in 2019.
Education: Computer Network Engineering, Computer Desktop Administration
Fave Song: Destiny's Child 'Dangerously in love'
Fave Colour: Grey.
With £1m what would you do: I would do my part to provide opportunities to the less fortunate. Then do my best to change the world in my own way through sports and talent building.
