Amazon.com Inc. could complete a deal to buy MGM Holdings for nearly $9 billion as early as this week, according to the WSJ.
- The acquisition deal includes debt, and will be Amazon’s second-largest purchase after buying Whole Foods for $13.7 billion in 2017.
- With the deal, MGM will be a streaming asset for the ecommerce giant which launched Amazon Prime in 2007.
- MGM was valued at $5.5 billion in December, and had around $2 billion worth of long-term debt at end-March.
- Negotiations between the two parties began at the start of 2021, and officials held exclusive talks in recent weeks.
- MGM titles include movies such as Rocky, The Pink Panther, and the James Bond franchise. It also owns shows The Handmaid’s Tale and Fargo, and premium pay-television channel Epix.
- Amazon has poured hundreds of millions in acquiring theatrical releases. It is currently producing a television series based on the Lord of the Rings with a $465-million budget for the first season.
- Shares in privately-traded MGM were at $140 on Monday morning, and hit $150 after reports on the talks were released.
AMZN: Nasdaq is up 0.48%.