Amazon Reportedly Close To Buying MGM For Nearly $9 Billion - Forbes

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Topline

Amazon is closing in on a billion-dollar deal to purchase legendary Hollywood studio MGM, according to the Wall Street Journal, a move that could bolster the company's entertainment offerings and help draw more customers to Amazon Prime, the company’s streaming service.

Key Facts

The deal being discussed would reportedly see Amazon pay close to $9 billion for the Beverly Hills-based MGM Studios, one of the oldest and most well-known film studios in the world.

Sources close to the negotiations told the newspaper the deal, if last-minute negotiations don’t fall through, could be announced as early as this week.

In December, MGM was valued at $5.5 billion, including debt, according to the WSJ.

Amazon did not immediately respond to a Forbes request for comment.

Key Background

MGM’s expansive library, which includes the James Bond franchise, classics like Gone With the Wind and The Wizard of Oz and modern hits like Fargo and The Handmaid’s Tale, could be a boon for Amazon’s Prime streaming service. A $9 billion deal would be the second-largest acquisition in Amazon history, second only to the $13.7 billion the company paid for Whole Foods in 2017.