Amazon Nears Deal to Buy MGM — Here’s How Consumers Could Benefit

Henderson, Nevada, United States - August 17, 2020: Amazon fulfillment center exterior shot in Henderson Nevada USA .
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Amazon could be set to announce a deal today that it is buying MGM studios for up to $9 billion, CNBC reported Monday. It would be the e-commerce giant’s largest deal since it acquired grocery store Whole Foods for $13.7 billion in 2017.

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MGM Studios, best known for its iconic roaring lion logo at the start of its films, owns the “James Bond” franchise, “The Handmaid’s Tale” series, which now airs on Hulu, “Rocky,” the sci-fi franchise “Stargate” and more.

MGM, a privately held company with owners that include a laundry list of investment firms that purchased the property following its 2010 bankruptcy, has been seeking a buyer for several years, discussing acquisition with Apple, Netflix, and others, CNBC reported.

Meanwhile, Amazon seeks to acquire more high-quality video content for Amazon Prime Video service. MGM has more than 4,000 movies in its library, ScreenRant says. Fans could win if Amazon gains access to classic MGM movie franchises, plus reality television shows like “The Real Housewives” and “Shark Tank.”

Amazon Prime Video is included with an Amazon Prime subscription for $12.99 per month or $119 per year. That’s competitive for a streaming service, however, a Prime subscription offers many other perks, including fast, free shipping. The added content would help Amazon Prime Video compete with Netflix, Disney+ and Hulu.

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With an expanded library of hit movies and television shows, Amazon Prime would be even more enticing for viewers. The streaming service would have the option of offering this classic content free or charging subscribers to rent or buy the content, as it does now with many of its top films.

But the real benefit to fans might be the potential for reboots and remakes. Fans are saying the sci-fi classic “Stargate” is ripe for a reboot, and it’s possible that fans could see additional titles in the “Rocky,” “James Bond” and “Fargo” franchises.

Investors are apparently in favor of the deal as Amazon stock rose 1.31%, or nearly $42, Monday.

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