Amazon In Talks To Acquire MGM Studios

Amazon is set to close a deal with legendary film studio MGM Studios worth about $9 billion.

If this deal pulls through, it will go down as Amazon's second-biggest acquisition, just after its $13.7 billion purchase for the multinational supermarket chain, Whole Foods in 2017. 

Metro-Goldwyn-Meyer studios, fondly called MGM, is one of the oldest and most well-known film studios in the entire world. Founded in 1924 by Marcus Loew and Louis B. Mayer, the studio has an expansive library of about 4,000 film titles, including some of the most loved classics and popular films of all time like the James Bond franchise, The Hobbit, The Wizard of Oz, Legally Blonde, The Pink Panther, and even The Handmaid's Tale.

James Bond is the fifth-most valuable movie franchise of all time, with all 24 films grossing more than $7bn.

Over the past years, MGM has run into quite a bit of financial issues and has avidly sought a buyer. Last year, it was put up for sale and reportedly engaged in talks with Apple, and Netflix.

Amazon, which has been trying to grow its streaming service Amazon Prime. With more intense competition from Netflix, Disney, and other streaming services, it makes sense that they'd want to acquire a studio like MGM for more TV and film content. Last year, MGM made about $1.5 billion in revenue, despite its financial troubles.

Currently, Amazon(AMZN) trades at $3,259 on the NASDAQ exchange.

According to reports, the conclusion on the deal will be announced this week.