Why it matters: MGM, one of Hollywood's most famous studios, could be acquired by Amazon for $9 billion. Parent company MGM Holdings has reportedly been seeking a buyer since the end of 2020. Should the tech giant close the deal, it will gain access to a movie and TV catalog stretching back nearly 100-years, with titles that include classics Ben-Hur and The Wizard of Oz to James Bond and The Handmaid's Tale.
Variety reports that Amazon is one of several tech firms to have shown interest in acquiring MGM and its (now CGI) iconic Leo the Lion logo. The purchase price could reach anywhere between $7 billion - $10 billion, though the studio reps are said to be looking for $9 billion.
Bloomberg reports that MGM also discussed other options with different companies, including talks with Apple and Netflix about releasing the much-delayed James Bond film No Time To Die directly to a streaming service. MGM has since confirmed the next entry in the 007 franchise will get a theatrical release on October 8 in the US.
MGM says it has one of the world's "deepest libraries" of film and TV content. Among its 4,000 movies are The Hobbit, Rocky/Creed, and the Robocop franchises, along with The Silence of the Lambs and The Magnificent Seven. Its TV library, consisting of 17,000 episodes, includes Stargate SG-1, Stargate Atlantis, Fame, Fargo, and The Voice.
A $9 billion price tag is a significant investment for any company, but it's still less than the $11 billion Amazon spent on its TV shows, movies, and music for Prime services last year.
News of the potential deal comes days after AT&T announced plans to spin off its WarnerMedia unit and combine it with Discovery to create a new streaming giant.