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Amazon is close to buy Hollywood studio MGM for $9 billion

The e-commerce conglomerate Amazon is close to reach an agreement to acquire Hollywood MGM film studios for $9 billion, as the Wall Street Journal (WSJ) said today.

Amazon is close to buy Hollywood studio MGM for $9 billion

Mandatory Credit: Photo by NICK UT/AP/REX/Shutterstock (6450096a)
MGM FILE** The Metro-Goldwyn-Mayer logo graces the entrance gates at their Santa Monica, Calif., offices July 23, 2002. A bidding war has broken out for Metro-Goldwyn-Mayer, with Time Warner Inc. making a nearly $5 billion offer for the venerable Hollywood studio, according to newspaper reports . Sony Corp. has also tendered an offer to purchase Metro-Goldwyn-Mayer
PROFILE MGM, SANTA MONICA, USA

The newspaper, which cites knowledgeable sources on the subject, estimated that, if the purchase proceeds, it will be Amazon’s second largest acquisition, after the Whole Foods food chain, which costed $13.7 billion in 2017.

The deal could be announced as early as this week, according to the newspaper.

Last week, The Information had previously said that Amazon was considering acquiring the iconic Hollywood studio for between $7 billion and $10 billion.

This is not the first time it has been speculated on, but Amazon’s interest in expanding its capabilities in the entertainment sector may have increased in view of the ongoing concentration in the streaming market.

The merger of WarnerMedia and Discovery, also announced last week, could create a new competitor for streaming content leaders by bringing together one of the largest intellectual property libraries and a range of brands, including HBO and Warner Bros.

Amazon recently announced that about 175 million customers used Prime Video in 2020, which compares with the 208 million subscribers Netflix has and the more than 100 million Disney + has. The company that will result from the merger of WarnerMedia with Discovery may add up to 79 million.

MGM, which has been looking for buyers for months, has a large archive of content with 4,000 movie titles, dating back to the 1920s, including those from the James Bond series and classics like “Gone with the Wind”, and more than 17,000 hours of television.

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