Amazon in Talks for Buying MGM Studio for $9 Billion

Amazon is trying to grow its capitalist girth by buying Metro-Goldwyn-Mayer, a James Bond movie company. Amazon in talks for buying MGM studio for $9 billion, while the governors in the U.S. have started to choose federal unemployment aid to make people undertake low-paying jobs. $9 billion may look like a ridiculous amount of money for all of us, but recently Amazon had spent $11 billion in 2020 for the Amazon Prime platform, so $9 billion is a small amount in front of it. This massive amount of money spent on films, music, and web series is enough to buy these but not enough to raise the earnings for low-paid, overworking employees.

The Company will Get a Fantastic List of Movies that will Involve James.

If the deal is final, bond movies, The Hobbit franchises, The Silence of The Lambs, RoboCop, The Magnificient Seven, and Rocky and Creed. Classics like recent hits Fargo and The Handmaid’s Tale, reality hits Survivor and The Real Housewives of Beverly Hills, and In the Heat of The Night and the Stargate franchise. This deal would be profitable for Amazon Prime.

The industry sources say that Amazon is negotiating the deal to purchase MGM for $9 billion. The news is that Amazon and other media have been revolving around MGM for quite a while now. But Amazon’s interest in purchasing MGM is not on rumour level. It is huge. Mike Hopkins, a senior of Amazon Studios and Prime Video, will organise the deal with MGM board chairman Kevin Ulrich. He is a significant shareholder in MGM.

MGM had held a ”for sale” sign already. In December, MGM will look for a client, was affirmed. The recent news of MGM and Amazon talks started to roll on this weekend. Amazon was recently in conversations regarding a deal with MGM that would be nearly $7 billion and $10 billion. The sources stated that MGM has been muttering for a price of $9 billion to the buyers while the others look at it as $5 billion worth only.

Recently, Amazon has increased its interest in entertainment. The company in the last week has declared that Jeff Blackburn, who is a former high ranking executive, recently left e-commerce to get back to Amazon, managing a vast and merged media and entertainment field. The rumours started; Amazon in talks of buying MGM studios for a $9 billion whooping amount.

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Profits in Membership Globally

At present date, Amazon has over 200 million members in Prime globally, and

175 million people became a part of Prime Video in the last year, stated Jeff Bezos. Apparently, Amazon wants to turn its company into a bigger platform for the customers globally. And to do that, mixing MGM’s library with the Prime Video is the quickest way to do that. MGM owns the world’s massive library of TV content and premium movies.

The MGM library includes 17,000 episodes of programming, like Stargate SG-1,

Stargate Atlantis, Stargate Universe, Fargo, Get Shorty, Vikings, The

Handmaid’s Tale, Fame, Teen wolf, Condor, American Gladiators, and In the Heat of The Night. And some unscripted shows like The Real Housewives of Beverly Hills, The Hills, The Voice, Survivor, and Shark Tank.

Media is a small part of Amazon’s large domain, but it represents a fast-growing business share. The company had spent $11 billion on movies, music, and TV shows, web series for Prime Services in 2020. In the first three months of 2021, MGM Holdings recorded an income of $403.3 million, increasing 27% year over year and a net income of $29.3 million.

Talking to Chairman

Mike Hopkins, video executive, the meeting of Amazon’s bid for MGM will be organised. He is directly interacting with the MGM chairman Kevin Ulrich. MGM follows its origin in the 1920s organisation of Marcus Loew’s Metro films with a company controlled by the Hollywood legend Louis B. Mayer. MGM floated into a financial crisis by the next half of the 20th century. For decades Time Inc., Ted Turner founder of CNN, and a few times, the late billionaire Kirk Kerkorian owned MGM. There were many considerations before Amazon took over the entertainment department. Some time back, Amazon was recognised as a buyer of AMC Entertainment Holdings Inc., the movie chain, and a few investors mixed it with AMC Networks Inc., the owner of the cable channels. It is a casino company that is not an element of Metro-Goldwyn-Mayer. The stocks of MGM Resorts bounced by 5.8% in late trading.