Amazon reportedly in talks to buy movie studio MGM for $9 billion

LOS ANGELES (CNS) -- Amazon is reportedly negotiating to acquire the iconic movie studio MGM for about $9 billion.

Rumors that Amazon and other cash-rich tech companies were interested in buying the studio have circulated for a while, but sources told Variety that Amazon's interest in acquiring the studio has taken on a new zeal.

The deal is said to be orchestrated by Mike Hopkins, senior VP of Amazon Studios and Prime Video, directly with MGM board chairman Kevin Ulrich, whose Anchorage Capital is a major MGM shareholder, according to Variety, which confirmed in December that the studio was looking for a buyer.

According to Variety, news of Amazon's alleged talks with MGM began to spread over the weekend.

The Information, a subscription-based digital media publication, also reported Monday that Amazon was in talks about a potential deal for MGM, which could run between $7 billion and $10 billion.

Industry sources say MGM representatives have indicated to prospective buyers for months about a price tag of $9 billion, while others see it as worth about $5 billion, according to Variety.

Copyright © 2021 by City News Service, Inc. All Rights Reserved.