Throughout the 97-year history of MGM, the iconic production and distribution house, they have made themselves such an integral part of the movie industry that their roaring lion is almost part of the cinematic experience. Now it would appear that Amazon is looking to acquire the firm in what is being reported as a $9billion deal.
Although rumours have circulated for years, it would appear that now Mike Hopkins, the Senior Vice President of Amazon Studios and Prime Video, is dealing directly with MGM’s chairman Kevin Ulrich.
As of yet, representatives from both companies have not commented on the proposed deal, but it would appear from industry reports that MGM has been seeking a buyer since December of 2020 and now talks have been widely reported.
Early trade suggestions, reported by Variety, place the buying figure between $7 -10 billion, however, the leading rumour is that MGM were asking for $9 billion which Amazon will be hoping to negotiate down.
This news comes after it was revealed that of Amazon Prime’s 200 million worldwide members, only 175 million actually used the Prime Video service last year, thus Jeff Bezos and Co. are aiming to make it more profitable.
Acquiring MGM and their near-century catalogue of classics would be a sure-fire way to do that and with the film company making a net loss of $12.1 million last year, the current downward trajectory is likely to offer up a reduced price for the corporate giant.
It would appear, however, that negotiations are still very much in their infancy and there is still a long way to go before any deal is arrived at.