MGM has been looking for a buyer since December and had enlisted New York-based investment banking companies Morgan Stanley and LionTree as advisors.
The move comes as Amazon looks to make headway in the streaming landscape with Prime Video. Amazon said it has spent $11 billion on content for Prime streaming services in 2020, an increase of 40% year over year.
Amazon founder Jeff Bezos said in an investors call on April 29 that 175 million of Amazon’s 200 million subscribers had used Prime Video for streaming in the past year, and streaming hours were up 70% year over year. Amazon Studios’ content also performed well in the 93rd Academy Awards, bringing in 12 nominations.
The pandemic stalled the releases of MGM films including the 25th installment of the James Bond franchise, “No Time to Die” and “Legally Blonde 3.” MGM Holdings Inc., the studio’s parent company, saw its fiscal year revenue dip around 3% in 2020, from $1.54 billion to $1.5 billion.
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