Amazon is circling MGM Holdings for a possible acquisition of the Hollywood studio. The Wall Street Journal is reporting that Amazon would buy MGM for “almost $9 billion.” The Journal further reports that the agreement could be sealed “as early as this week.” This would be Amazon’s second largest acquisition after the $13.7 billion purchase of Whole Foods in 2017.
MGM’s stable of franchises include some of the most storied in Hollywood- James Bond, Rocky, RoboCop, Pink Panther and Legally Blonde. The Handsmaid’s Tale and Shark Tank are among the studio’s TV productions.
“They’re not in the media business. They’re in the Prime business.”
Barry Diller told CNBC last week that Amazon “is a different world than anyone else. They’re not in the media business. They’re in the Prime business.” Amazon cares only if you subscribe to Prime, not necessarily “put [butts] in seats” for their movies and television content.
Furthermore, the Expedia chairman said, “Netflix won this several years ago. They’re the only ones who have the scale and momentum to make this somewhat ludicrous investments in programming.”
