Updated: Jun 1, 2021
It appears Amazon is looking to build their Prime Videos library with an $8 - $9 Billion deal with MGM, a studio's with a great collection of movies that includes the "James Bond" and "Rocky" franchises.
By Allan R. Kirby
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Amazon is looking to bolster its Prime video library with a possible purchase of MGM studios with its 4,000 film titles that includes top franchise brands such as "James Bond", "Rocky" and the "Pink Panther". This comes as no surprise given that 175 million of Amazon Prime’s roughly 200 million members have streamed shows and movies in the past year. This is by no means a small number and is only second to Netflix's 207 million subscribers. So by providing a deep and attractive library of content for their streaming service will help keep customers coming back and using Amazon's vast and ever-expanding consumer ecosystem.
If Amazon is able to settle on a price, the deal would greatly improve their streaming library and be added value to prime members.
If the transaction does occur, this will be one of Amazon's largest acquisitions since the 2017 $13.7 Billion Whole Foods deal, but the possible $8 - $9 Billion price tag is really just pocket change given Amazon's overall market valuation of 1.6 Trillion. So although this is a big acquisition it's actually a very small deal for Amazon but will have a big impact on their streaming services.
Hopefully, the two sides can come to an agreement, because the move would help keep prime members coming back to Amazon's website. This of course is exactly what Amazon wants to do, keep members engaged and getting them to buy products on Amazon.com.
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