Amazon is apparently about to take over MGM

Amazon is apparently about to take over the Hollywood film studio MGM to strengthen its streaming business. A deal worth almost 9 billion US dollars is imminent, said people familiar with the processes. An agreement could be announced later this week. It would be Amazon's second largest acquisition in the company's history after purchasing Whole Foods for $ 13.7 billion in 2017. The markup that Amazon is now willing to pay for MGM, according to informants, reveals the need for streaming providers, given the tougher competition Putting money into content. MGM was valued at $ 5.5 billion including debt in December. Long-term debt at the end of March was around $ 2 billion. MGM hired the investment banks Liontree and Morgan Stanley at the end of 2020 to initiate a formal sales process. Since the beginning of the year there have been conversations between Amazon and MGM, the informants report. In the past few weeks they had exclusive negotiations. The MGM board was informed on Sunday evening. But there is no guarantee that a deal will ultimately be reached. MGM also includes the James Bond series. But the studio, which was founded in the silent film era, also has a huge catalog of films and series that should help Amazon win more streaming customers. MGM is one of the few Hollywood studios that is not part of a large corporation. Like the rest of the industry, the film studio has suffered from closed cinemas during the pandemic, and the start of the blockbuster hope "James Bond 007 - No Time to Die" has already had to be postponed several times. On the other hand, video streaming at home boomed during the pandemic with a lack of nightlife options in North America and Europe. Amazon is investing heavily in its film and TV offering as well as live sports. Amazon is currently producing a TV series based on the fantasy epic "Lord of the Rings" with a budget of $ 465 million for the first season alone.