MGM, the
storied Hollywood company behind the James Bond series, would help bolster
Amazon’s Prime streaming service, the Information and Variety said in separate
reports. Amazon is weeks into negotiations to buy the studio for about $9
billion, according to Variety.
MGM and
Amazon declined to comment on the report.
MGM has
been seen as a takeover target for years, but was never able to close a sale.
The company made a fresh push last year, when it reportedly hired advisers to
solicit offers. In seeking a deal, MGM aims to capitalize on the proliferation
of streaming services, which has increased demand for large backlogs of
content.
It’s also
discussed other scenarios with tech giants. MGM, whose library includes the
“Rocky” films and “Silence of the Lambs,” also held talks with Apple Inc. and
Netflix Inc. about taking its new James Bond film directly to streaming. But
the company said last year that it’s committed to a theatrical release for the
film, which is currently slated for Oct. 8 in the U.S.
Amazon,
meanwhile, is reshuffling its entertainment operations with the return of
long-time executive Jeff Blackburn. He briefly left the e-commerce company to
join Silicon Valley venture capital firm Bessemer Venture Partners. But now
he’s taking command of Amazon’s entire entertainment division, including the
Prime Video streaming service, Amazon Studios and the video-game-streaming site
Twitch.
Talking to
Chairman
Amazon’s
bid for MGM is being handled by video executive Mike Hopkins, according to
Variety. He’s dealing directly with MGM Chairman Kevin Ulrich, the publication
said.
MGM traces
its roots back to the 1920s merger of Marcus Loew’s Metro films with a film
company run by Hollywood legend Louis B. Mayer. While making great pictures
like “Dr. Zhivago” and “2001: A Space Odyssey,” MGM drifted in and out of
financial distress in the second half of the 20th century. Over the decades it
was owned by Time Inc., CNN founder Ted Turner and more than once by the late
billionaire Kirk Kerkorian.
There’s
been speculation before about Amazon acquiring entertainment companies. It was
previously seen as a possible buyer of AMC Entertainment Holdings Inc., the
movie chain, with some investors confusing it with AMC Networks Inc., the owner
of cable channels.
Investors
suffered a similar sort of confusion on Monday, with the Information report
boosting shares of MGM Resorts International, a casino company that isn’t part
of Metro-Goldwyn-Mayer. MGM Resorts stock jumped as much as 5.8% in late
trading before quickly retreating. - Bloomberg
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