MGM is one of Hollywood’s famous studios, with its Leo the Lion logo and an almost century long history. The sale would give the tech giants Prime streaming service access to a vast back catalogue of iconic content. The reports come just hours after telecoms giant AT&T agreed to combine its Warner Media unit with Discovery in a deal to create a new streaming giant. MGM holdings the parent company of MGM studios has reportedly been exploring a sale since the end of last year, according to media reports. The purchase by Amazon of MGM studios would mark a major step for its Prime streaming service.
Amazon and MGM have not yet responded to requests for comment from the officials. On Monday an agreement was announced to put together movie giant Warner Bros. Entertainment, which owns the Harry Potter and Batsman franchises, with Discovery’s home, cooking, nature and science shows. But it is currently dwarfed by larger rivals like Netflix, which has 208 million subscribers, and Disney+ more than 100 million.
“This is s streaming arms race and AT&T is making an offensive strategic move to further bulk up its content in the battle versus Netflix, Disney, and Amazon,” Dan Ives Wedbush securities said.