Amazon eyes MGM in $9bn deal

Amazon is said to be in talks to buy legendary Hollywood film studio MGM for as much as $9bn (£6bn), according to multiple reports.

The tech giant is said to be engaged in takeover talks with the studio as it looks to expand its catalogue and production heft in the ongoing global streaming wars. The deal was first reported by technology news website The Information but has since been followed up by multiple publications including the New York Times and the Financial Times.

A spokesperson for Amazon said the company doesn’t comment on rumour or speculation. MGM has been contacted for comment.

Reports suggest MGM is seeking to sell itself for as much as $9bn. MGM, one of the few remaining independent Hollywood movie studios, first put itself on the market last December.

Any deal would represent a major expansion of Amazon’s ambitions in the streaming space, where it competes with the likes of Netflix (NFLX), Apple (AAPL) and Disney (DIS). MGM is one of Hollywood’s oldest studios and owns rights to blockbusters including the James Bond franchise, Rocky, and the Pink Panther. It has produced hit TV shows including A Handmaid’s Tale, Fargo and Vikings.

Shares in Amazon were up 0.8% in New York on Tuesday. Netflix was up 0.3%, Apple was 0.3% higher, and Disney was flat.

Amazon first entered the content market in the late 2000s but has massively expanded its Prime video streaming service in the last five years. Chief executive Jeff Bezos said last month that roughly 175 million people now use the film and TV streaming service.

The push to acquire content comes as more rivals enter the market. Apple TV+ and Disney Plus both launched in 2019 and this week AT&T (T) announced a deal to merge its media assets with Discovery (DISCA) in a blockbuster deal to create a streaming service that will house HBO, CNN, and The Food Network among others. Finance Yahoo