Company Of The Day: Amazon

What?

Amazon(AMZN) is apparently in talks to acquire movie studio MGM Holdings, marking the e-commerce behemoth’s most ambitious bet in the entertainment space.

Why?

Amazon is looking to bolster its Prime video service to take on the likes of Netflix and Disney Plus, and MGM, with its film franchise and library that includes James Bond, Rocky and The Pink Panther and series such as The Handmaid’s Tale and Fargo, could be an ideal target.

So What?

The potential deal could be valued at about $9 billion, per Variety magazine. Although this might seem like a lot, it’s probably a reasonable sum in the context of the content budgets of other streaming majors. Netflix for instance, is on track to spend $17 Billion on content this year.

See Our Complete Analysis For Amazon

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