Wednesday September 22, 2021

Amazon to give tough competition to streaming giants if it snags MGM deal

Amazon is all set to give tough competition to streaming giants if it snags the MGM deal
May 19, 2021

NEW YORK: Amazon is in talks to acquire the fabled MGM studios, which would bolster the US tech giant´s ambitions in streaming media with James Bond, Rocky and other film franchises, media reports said Tuesday.

The deal could value the storied Metro Goldwyn Mayer name at between $5 billion and $10 billion, according to the New York Times, The Information and other media.

Amazon, whose Prime Video is used by some 175 million people worldwide, would acquire MGM´s 4,000 title catalogue including the Bond series, Pink Panther and Legally Blonde, along with an array of television programmes.

A deal would mark yet another change in ownership for MGM, founded in 1924 and one of the major studios of Hollywood´s golden age.

The talks come amid a fast-evolving media landscape increasingly dominated by streaming giants such as Netflix, a trend which has accelerated during the coronavirus pandemic.

Any deal could draw heightened scrutiny for Amazon, one of the Big Tech firms gaining unprecedented economic power in recent years and in the crosshairs of antitrust enforcers around the world.

Earlier this week, telecom giant AT&T said it was spinning off its WarnerMedia division -- owner of the Warner Bros studios -- in a combination with Discovery, creating a new entity to focus on streaming and competing with the rapidly growing Disney+ and new entrants such as Apple TV+.

Neither Amazon nor MGM commented on the reports.