Amazon is reportedly negotiating to buy MGM

The asking price is around $9 billion.

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Richard Lawler
May 18, 2021 7:45 AM
View of the MGM tower in Los Angeles, California, on April 20, 2010. Work on the latest James Bond movie has been suspended indefinitely because of debt-ridden MGM studio's uncertain future. The MGM studio is home to famous franchises including James Bond and the Pink Panther, but has been struggling under huge debts. At the end of last month MGM was given a new extension until May 14 to repay some 3.7 billion dollars in debt. The studio had said earlier in March that it had received several offers to buy the company. AFP PHOTO / GABRIEL BOUYS (Photo credit should read GABRIEL BOUYS/AFP via Getty Images)
GABRIEL BOUYS via Getty Images

Now that the streaming video race is about as crowded as it can get, what can Amazon do to lock up more exclusive content? According to rumors reported by The Information, Variety and the New York Times, it's considering spending as much as $9 billion to buy MGM, which comes with a film library that includes franchises like James Bond, The Hobbit, Stargate and Robocop plus thousands of other movies. MGM also bought full ownership of the Epix channel in 2017.

Last week Amazon announced that a former executive, Jeff Blackburn, would return to the company to oversee businesses including Amazon Studios and Twitch, and the thinking is that part of his reason for the move is the opportunity to manage MGM's library.

This rumor dates back to a report from Forbes in January, although all sides say that a deal isn't done yet. Still, the timing seems right for a new strategy from Amazon, as Netflix pairs up with Sony Pictures, AT&T sells off WarnerMedia and Disney+ keeps pumping out Star Wars / MCU content.

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