The agreement will bring a huge library of MGM movies and shows to Amazon, including franchise rights for James Bond, The Pink Panther, Robot and Rocky, and films such as “The Silent Lamb.”
People familiar with the matter said that Amazon is preparing to announce the acquisition of Metro-Goldwyn-Mayer film studios on Tuesday, which marks the e-commerce giant’s largest plan to enter Hollywood so far.
The person familiar with the matter said that Amazon is negotiating to acquire the company for a price of nearly 9 billion U.S. dollars, and because the negotiations are private, they requested anonymity. The discussions first reported last week may still break down, and prices or timing may change.
The agreement will bring a huge library of movies and shows to Amazon, which operates the Prime Video streaming service. MGM’s film catalog includes James Bond, The Pink Panther, Robot and Rocky franchise, and films such as “The Silent Lamb”.
Amazon declined to comment, and MGM did not immediately respond to a request for comment.
MGM is currently owned by hedge funds including Anchorage Capital Group and has been considered an acquisition target for many years, but it has never been able to complete the sale before. Last year, the company made a new effort, when it was reported that it hired a consultant to seek a quote.
The studio is also looking for other ways to make money from movies. People familiar with the matter said that Apple has negotiated with Apple and Netflix to bring the new James Bond film directly to streaming media. The studio chose to continue to release the film, and it was released in the United States on October 8.
“The Wall Street Journal” previously reported that the MGM and Amazon deal may be concluded as early as this week.
The acquisition of MGM for approximately US$9 billion will be Amazon’s largest acquisition since it agreed to acquire Whole Foods for US$13.7 billion in 2017. But this is not the first sign that the company is willing to invest a lot of money in the media. Last year alone, the company spent approximately $11 billion on streaming video and music services. And it agreed to pay about $1 billion annually for NFL rights.