4 Reasons Amazon Would Be Smart to Acquire MGM Studios
For the record, neither Amazon (NASDAQ:AMZN) nor MGM Studios have confirmed rumors of the former buying the latter. On the other hand, they're not denying the rumors either. And the idea certainly passes a plausibility test. MGM has been "for sale" for months now, and Amazon is most definitely in the business of making movies and television shows. The e-commerce giant spent $11 billion on video content last year, and perhaps more notably, its in-house Amazon Studios is now annually producing on the order of 300 hours' worth of original programming including hits like the TV show Bosch and the Academy Award-winning movie Sound of Metal. Adding an established name to the mix could certainly boost this original content effort, further loosening Amazon's reliance on third-party video.