Amazon: MGM Acquisition Due To Be Announced This Week

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Amazon is very close to acquiring MGM Studios, a company that owns big movie franchises like James Bond. According to the information, the negotiation has a value of about US $ 9 billion – R $ 47.8 billion in the current conversion.

Entertainment industry sources indicate that the acquisition is expected to be announced on Tuesday (25). Meanwhile, the Wall Street Journal said the deal will be revealed by the end of this week.

Concerned about rivals Netflix and Disney +, Amazon is interested in purchasing more content for the Prime Video catalog. Thus, the acquisition of MGM would be a natural action to increase the library of the streaming service.

Looking for buyers for years, the classic Hollywood studio is a private company. Currently, the owners are investment funds that took control of the brand when it filed for bankruptcy in 2010.

MGM has an extensive list of famous franchises on TV and in cinemas, such as Stargate, Rocky and Robocop. As well, the company’s studio is responsible for producing highly successful series like The Handmaid’s Tale and Vikings.

The brand also owns the rights to popular reality shows, including Shark Tank and The Voice. Finally, it owns the premium cable TV service Epix, valued at about $ 1.3 billion (R $ 6.9 billion) in 2017.

Large acquisitions from Amazon

Although the numbers are impressive, it is important to mention that the purchase of MGM also involves the debts of the studio. Analysts point out that of the US $ 9 billion that will be invested, about US $ 2.7 billion would be used to settle old commitments.

Surprisingly, this will not be Amazon’s biggest acquisition. In 2017, the company bought the supermarket chain Whole Foods for US $ 13.7 billion (R $ 72.9 billion in the current conversion).

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