Amazon In Talks To Buy MGM Reportedly For $9 Billion

LOS ANGELES, CA — Amazon is reportedly in talks to buy the MGM movie studio, a blockbuster sale marrying digital entertainment to the studio synonymous with Old Hollywood. The sale is reportedly a $9 billion deal.

On Monday, sources told Variety that Amazon's interest in acquiring the studio has taken on a new zeal, confirming rumors that MGM was entertaining offers from cash-rich tech companies. According to Variety, news of Amazon's alleged talks with MGM began to spread over the weekend. According to THE WRAP, negotiations range between a $7 and $10 billion for the deal.

Both companies are declining to publicly discuss the rumored deal.

Industry sources say MGM representatives have indicated to prospective buyers for months about a price tag of $9 billion, while others see it as worth about $5 billion, according to Variety

The deal is said to be orchestrated by Mike Hopkins, senior VP of Amazon Studios and Prime Video, directly with MGM board chairman Kevin Ulrich, whose Anchorage Capital is a major MGM shareholder, according to Variety, which confirmed in December that the studio was looking for a buyer.

The news broke Monday on the same day as another industry-shaking merger was announced. AT&T announced it will spin off WarnerMedia, merge it with Discovery. It's a merger that includes CNN, HBO and HGTV. According to the New York Times, that merger could have a value above $100 billion and "would rival behemoths like Disney, the biggest media company, as well as Netflix, the leader in streaming."

City News Service and Patch Staffer Paige Austin contributed to this report.