Amazon (AMZN) will acquire MGM in a transaction that values the Hollywood studio at $8.45 billion. The acquisition, which will complement the work of Amazon Studios, is expected to boost the tech giant’s content distribution business.
MGM will bolster Amazon Studios library with the addition of over 4,000 beloved film titles. Additionally, MGM will provide Amazon with an upcoming slate of films and a catalog of 17,000 TV shows. Well-known titles under the MGM belt include The Magnificent Seven and The Pink Panther.
Amazon has already affirmed its commitment to strengthening MGM and enhancing its heritage and catalog of films. It plans to offer customers wide access to current and upcoming works.
“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling,” said Mike Hopkins, SVP of Prime Video and Amazon Studios.
The $8.45 billion acquisition is subject to regulatory approvals and fulfillment of other customary closing conditions. (See Amazon stock analysis on TipRanks)
Citigroup analyst Jason Bazinet believes there is ample room for Amazon to experience growth in the B2B business. The remarks come on the tails of the e-commerce giant’s impressive first-quarter results and an outlook that beat analysts’ forecasts.
Bazinet has reiterated a Buy rating on Amazon on strong growth expectations in the business services platform. The analyst has also raised his stock price target to $4,175 from $3,750, implying 27.87% upside potential to current levels.
Consensus among analysts on Wall Street is a Strong Buy based on 31 Buy ratings. The average analyst price target of $4,298.55 implies 31.65% upside potential to current levels.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in AMZN is currently Very Positive. Hedge funds have increased their cumulative holdings by 660.5K shares in the last quarter.
Related News:
Amazon Developing AWS Infrastructure in the UAE
Uber Partners with White House to Offer Free COVID-19 Vaccination Rides
Snap to Acquire WaveOptics for over $500M – Report
