Amazon is negotiating to acquire MGM for $9 billion

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According to people familiar with the matter, Amazon is negotiating to acquire MGM, the film studio behind the James Bond film series, for about $9 billion.

After a wave of large-scale integration, MGM is one of the few Hollywood film studios. Warner Bros. is operated by AT&T. Hollywood studios have not been annexed by large-scale integrated enterprises. Disney’s Fox; Comcast internally used; and Paramount in Viamount CBS.

Monday, with Explore and WarnerMedia, Because traditional media groups are competing to build larger scales to compete with large technology companies in the online-dominated entertainment business stream media.

Like other film studios, MGM has been hit hard by the coronavirus pandemic.As cinemas in the United States and Europe were mostly empty in the past year, MGM postponed the release of the behemoth Bond film No time to die Four times.

Following the screening of the movie and the Covid-19 boom last fall, Netflix and MGM held talks on the acquisition No time to die People familiar with the matter said that for streaming media distribution, the price the studio wants has become too high. The film is scheduled to be released in the UK on September 30 and in the United States on October 8.

MGM has a huge library of movies and shows, including Fargo, Maid’s story And the Hobbit and Bond franchise.

MGM’s largest shareholder is the hedge fund Anchorage Capital, which started buying the studio’s debt in 2010 as part of its bankruptcy plan after the financial crisis. MGM reported a net income of 29 million U.S. dollars in the first quarter and revenue of 403 million U.S. dollars.

Amazon declined to comment. MGM did not respond to a request for comment.

Tell employees last week that Jeff Blackburn, longtime vice president of CEO Jeff Bezos, will return to the company to operate a new “global media and entertainment organization”, and the e-commerce giant is remaking its entertainment plans. The department will integrate the breadth of Amazon’s entertainment content, from the Prime Video service to the game streaming site Twitch.

Last year, Amazon spent $11 billion to create, acquire or license music and video content for Prime subscribers, up from $7.8 billion in 2019. The company has also been busy acquiring the rights to live sports, including a deal with the NFL, worth about $1. One billion dollars a year is used to broadcast “Thursday Night Football”.

In a recent letter to shareholders, Bezos announced that Amazon has more than 200 million members.

The information first reported on the meeting between Amazon and MGM.

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