Amazon is planning to grow its presence in Hollywood. This is apparently why the tech giant is considering a deal to buy Hollywood film and TV studio Metro-Goldwyn-Mayer (MGM). It must be noted that MGM is the film studio that owns the rights to some of the most popular movie series like James Bond and Rocky. The studio is responsible for some classics like Gone with the Wind, The Wizard of Oz, and others. The studio has also produced popular television series like The Handmaid’s Tale, Shark Tank, and more. It also has a deep library of over 4,000 films and 17,000 hours of television. Reports suggest that Amazon is negotiating the deal for almost a week and may buy the studio for USD 9 billion.
If the deal is finalized, it would be the biggest attempt by Amazon to expand its footprint in the field of entertainment content. The talks about the deal are followed by the purchase of the highly-anticipated Cinderella remake. However, representatives of the tech giant have refused to comment on the reports. Amazon Studios and Amazon Prime vice president Mike Hopkins are overseeing the deal with which is going on with MGM board member Kevin Ulrich. It must be noted that the movie studio has been in good relation with Amazon in recent years. The studio inked a deal to stream some of its content on the Amazon platform in 2012 and the deal continued in the years following.
In December last year, the two companies signed a deal under which MGM shifted its content on Amazon’s cloud. The deal was reported to help MGM develop a new revenue model and business opportunities. MGM was established in the year 1924 and is considered to be one of the oldest film studios in the world. But the company has been going through some tough times over the past few decades. It traded hands several times because of a decline in success and sold properties in the process. MGM has several subsidiaries and a few of them are United Artists Releasing and Orion Pictures. Interestingly, the news about the possible acquisition comes at a time when AT&T announced the merger of WarnerMedia with rival Discovery to form a separate company. The USD 43 billion merger is apparently to take on rivals like Disney and Netflix.