Amazon In Talks To Acquire MGM: What You Need To Know, Inc (AMZN) is in talks to acquire MGM movie studio, which could give a significant boost to the latter’s entertainment portfolio, as per reports.

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What Happened: The discussions were reported by The Information on Monday (via AppleInsider). The status of the talks can’t be confirmed and there is no certainty the deal will reach fruition.  

The news of the talk between the two companies comes days after Amazon announced the return of Jeff Blackburn to its fold to lead the company’s consolidated media group, reported Variety.

Blackburn’s domain extends to Prime Video, Amazon Studios, Amazon Music, Wondery and podcasts, Audibles, games, and Twitch.

Why It Matters: MGM has a rich content catalog that includes James Bond films. The company also owns the Epix cable channel and it is the creator of popular television shows such as “Shark Tank,” Fargo,” and The Handmaid’s Tale.

On Monday, AT&T Inc (T)and Discovery, Inc  (DISCA ) confirmed that the two will merge the latter’s WarnerMedia arm with Discovery’s platform to create a global entertainment behemoth. 

Bank of America analyst Jessica Reif said in a note Monday that in their view the “DISCA/WarnerMedia would be a powerhouse content and streaming company offering investors pure-play exposure to enticing best-in-class content assets.”

Price Action: Amazon shares closed nearly 1.5% higher at $3,270.39 in Monday’s regular session and rose 0.32% in the after-hours trading.

© 2021 Benzinga does not provide investment advice. All rights reserved.

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