Amazon is currently in negotiations to buy movie studio MGM for $9 billion, during a time when the world’s largest telecommunications firm AT&T revealed plans to combine WarnerMedia and Discovery to form a major media conglomerate capable of competing with leading video services including Netflix.
Although The Information reported that Amazon is in talks to purchase MGM Holdings for between $7 billion and $10 billion, Variety reported on Monday that MGM was looking to close at $9 billion.
MGM maintains a sizable film archive, including the long-running James Bond series and other famous films such as Rocky and Pink Panther.
“It also operates the Epix cable channel which produces television shows such as The Handmaid’s Tale and Fargo, as well as reality shows such as Shark Tank and Survivor,” according to the article.
According to The Guardian, MGM owns a catalog of 4,000 films and 17,000 hours of television.
Since December 2020, MGM has been on the market for sale.
The announcement comes on the heels of AT&T and Discovery announcing a binding deal on Monday to merge WarnerMedia’s premium television, sports, and news properties with Discovery’s leading non-fiction, foreign film, and sports companies to establish a premier, independent global entertainment firm.
AT&T will gain $43 billion (subject to adjustment) in a mixture of assets, debt securities, and WarnerMedia’s retention of some debt under the terms of the deal.