Amazon’s is in talks to gain complete control of Movie Studio MGM
2 min read
Amazon is in talks to gain complete control of Movie Studio MGM for $9 Billion, thus building on its vision to become a king in the media space. But hold on!
Discussions could fall apart as the price of the deal may change. MGM has been seen as a takeover target for years but was never able to close a sale. This shows that MGM won’t close a deal with Amazon in any lesser amount. However, if the deal goes through, this would be Amazon’s 2nd largest purchase. It bought Whole Foods Market for $13.7 billion in 2017.
2021 can be a record breaking year for media takeovers.
• More than $80 billion in media takeovers have been announced so far in 2021. This comes at a time when:
- AOL and Time Warner have announced plans to combine.
- AT&T announced its plan to form a new entity by merging assets with Discovery, at an enterprise value of $130 billion.
The mushrooming demand for OTT releases & newer arrivals of platforms like Disney+, HBO Max and Paramount+, has put pressure on Amazon to acquire a giant like MGM. MGM’s vast backlog will provide a bunch of shows & movies at a time when the new production is at a halt due to the pandemic.
Do you think this deal will be inked for $9 billion, or more?
