According to a person familiar with the matter, Amazon.com Inc. is in negotiations to acquire Metro-Goldwyn-Mayer, the company behind the James Bond films, potentially is removing one of the last major independent film studios from the industry. According to the individual who asked not to be named because the discussions are private, Amazon is considering an offer of around $9 billion. Discussions could also fall apart, and information such as price could adjust, according to the source. The talks had previously been reported on by The Information and Variety. An agreement will bring to a close a flurry of streaming deals, that are expected to make 2021 a record year for media takeovers.
The reports came on the same day that AT&T Inc. revealed its intention to build a new entertainment business by combining assets with Discovery Inc. in an enterprise estimated at around $130 billion, including debt. The film studio behind the “James Bond” franchise also operates the Epix cable channel and produces TV shows such as The Handmaid’s Tale, Fargo, Vikings, and Shark Tank. It is also one of the few major film studios that has retained its independence from larger media conglomerates. AT&T also owns Warner Bros., Walt Disney Co., owns 20th Century Fox, ViacomCBS Inc. owns Paramount, Comcast Corp. and also owns Universal Pictures.
The proliferation of streaming platforms, including newcomers like Disney+, HBO Max, and Paramount+, has placed pressure on Amazon to acquire more programming. MGM’s massive backlog also offers a plenty of content, at a time when new show and movie production is still recovering from the pandemic.
MGM and Amazon also refused to comment on the negotiations. According to Bloomberg reports, more than $80 billion in media takeovers have been revealed this year. This means that 2021 would be the busiest year for the industry since at least 2000, when AOL and Time Warner Inc. announced plans to merge. For years, MGM was considered a takeover candidate, but it was never able to close a deal. The business made a new effort last year, according to the Wall Street Journal, when it employed advisers to solicit bids.
MGM also spoke with tech titans to discuss other scenarios. MGM, whose catalogue includes the “Rocky” films and “Silence of the Lambs,” has held discussions with Apple Inc. and Netflix Inc., about streaming the upcoming James Bond film. However, the studio stated last year that it is committed to a theatrical release for the film, which is currently scheduled for October 8 in the United States.
Meanwhile, Amazon is reorganising its entertainment division with the return of former executive Jeff Blackburn. He quit the e-commerce business for a short time to join the Silicon Valley venture capital firm Bessemer Venture Partners. However, he is also in charge of Amazon’s entire entertainment division, which includes the Prime Video streaming service, Amazon Studios, and the video-game streaming platform Twitch. An Amazon acquisition of MGM will be the company’s biggest investment, since it paid $13.7 billion for Whole Foods Market in 2017.
There has previously been rumours of Amazon purchasing entertainment companies. It was previously thought to be a potential buyer of AMC Entertainment Holdings Inc., the movie theatre chain, with some investors confused it with AMC Networks Inc., the cable channel owner.
On Monday, investors were perplexed by the Information storey, which boosted shares of MGM Resorts International, a casino company that is not owned by Metro-Goldwyn-Mayer. MGM Resorts’ stock rose as much as 5.8 percent in late trading before rapidly falling down.
