Amazon made $9bn offer for MGM

Amazon is into heavy negotiations to acquire MGM for about $9bn, industry sources told Variety today. According to the news outlet, the tech giant has reportedly been negotiating a deal for "weeks", which confirms information first reported on Monday that Amazon was in talks for a potential deal that could run between $7bn and $10bn.

Chatter that Amazon (and other tech giants) have been sniffing around MGM has circulated for some time. But sources indicated that Amazon’s interest in acquiring the studio has taken on a new tenor beyond the usual rumor mill. The deal is said to be being orchestrated by Mike Hopkins, senior VP of Amazon Studios and Prime Video, directly with MGM board chairman Kevin Ulrich, whose Anchorage Capital is a major MGM shareholder.

MGM had already effectively nailed up a “for sale” sign In December. News of Amazon’s talks with MGM, however, began to swirl just this weekend. Industry sources said MGM reps have been whispering to prospective buyers for month about a price tag of $9bn while others see it as worth about $5bn.

The potential sale of MGM to Jeff Bezos' company could signal the tech company's move to expand its Amazon Prime streaming inventory to include MGM's extensive array of big-name movies and TV shows. These include the James Bond, Hobbit, Rocky, and Pink Panther franchises, alongside "Legally Blonde," and "A Star is Born."

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