Seattle based Ecommerce company Amazon is working on a deal to acquire MGM Studios co-owner of the James Bond franchise and other film and TV series, for between $8.5 billion and $9 billion,The deal is expected to be announced as soon as Tuesday. The source wished to remain anonymous.
This would be the biggest acquisition of the Ecommerce company since it bought Whole Foods in 2017 for $13.7 billion. The Wall Street Journal announced that this deal would be public by this week. The Ecommerce company is interested in acquiring more TV and film content for its Prime Video service as it competes with Netflix, Disney and other streaming video services. MGM is a natural fit for any streaming service because of its plethora of content.
MGM owns several famed movie and TV franchises, including Rocky, Legally Blonde, The Pink Panther and Stargate. It also owns a studio, which has made more current hit TV shows, including The Handmaid’s Tale and Fargo. The company owns many other popular reality TV shows including Shark Tank, Survivor, The Real Housewives series and The Voice.MGM also owns Epix, a premium pay-TV service valued at about $1.3 billion in 2017.
The privately traded MGM was valued at around $5.5 billion, including debt, last December. Its stock price has soared in recent days, from about $105 a share in mid-May, before talks were reported, to roughly $140 a share Monday morning. The share price reached $150 Monday afternoon.