Amazon to buy MGM for $9billion to turn 'Rocky' and 'James Bond' studio into streaming giant in largest ever acquisition

AMAZON is reportedly close to sealing a deal to buy Hollywood studio MGM Holdings for around $9billion to expand its streaming assets as per its second-largest acquisition in history.

The agreement is expected to be announced this week if talks don’t fall apart, people familiar with the matter told the Wall Street Journal on Monday.

However, there are no guarantees that both companies will ultimately reach a sealed deal.

Privately traded MGM Holdings was valued at around $5.5billion last December. 

The company’s stock price skyrocketed recently from around $105 a share earlier this month, before discussions about the deal were disclosed, and climbed roughly $140 a share on Monday, according to the Journal.

Amazon and MGM Holdings have been talking about this deal irregularly since the start of 2021, both companies told the Journal.

MGM Holdings studio has a library of productions such as the James Bond franchise which is considered the most valuable asset in contemporary Hollywood that could increase Amazon Prime subscriptions.

Prime, Amazon’s video streaming service, has been competing with streaming giants like Hulu, Disney Plus, and Netflix who saw a surge in viewer subscriptions amid the pandemic.

MGM Holdings studio is known for running classic productions such as Singin’ in the Rain, Rocky, and The Pink Panther. 

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