Rumor claims Amazon wants to buy movie studio MGM

Satsuki Then - May 18, 2021, 5:28am CDT
Rumor claims Amazon wants to buy movie studio MGM

An interesting rumor is floating around that reportedly comes from industry sources familiar with negotiations between Amazon and iconic movie studio MGM. According to the sources, Amazon and MGM have been negotiating for weeks on a deal that could see Amazon by the movie studio for $9 billion. Past reports have suggested that Amazon and other tech companies were circling MGM in an attempt to purchase the movie studio.

Amazon looking to purchase a major movie studio like MGM is no real surprise as it currently makes numerous movies and TV shows of its own. Sources in the industry told Variety that the deal is being pushed by senior VP of Amazon Studios and Prime Video Mike Hopkins, who is in talks directly with MGM Board Chairman Kevin Ulrich.

It was confirmed in December 2020 that MGM was looking for a buyer. While the sources told Variety that the deal was worth $9 billion, other rumors have suggested the purchase could cost Amazon between $7 billion and $10 billion. Some sources believe MGM is only worth about $5 billion.

Amazon certainly has the money to finance such a massive purchase boasting more than 200 million Prime members around the world who pay monthly or yearly for the service. One of the benefits of being a Prime member is access to Prime Video, with 175 million of those 200 million customers streaming some video in the past year.

Presumably, if Amazon pulls off a purchase of MGM, the massive back catalog of MGM movies would become Amazon Prime Video exclusives. Notable franchises in the MGM movie archive include James Bond films and a huge number of TV shows. Amazon dropped $11 billion on TV shows, movies, and music during 2020.


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