Amazon will buy the long-established production company Metro Golden Mayer, which produced the popular James Bond and Rocky movie franchises, for $ 8.45 billion, giving it a huge library of movies and TV shows, and increasing competition with rivals led by Netflix and Disney +.
The deal aims to boost Amazon's TV-focused studio by making new and historic movies from MGM, and this helps the world's largest online retailer attract people to subscribe to Prime broadcasting service, and Epix also owns MGM, which offers popular TV programs.
Jeff Bezos, founder of Amazon, laid out the rationale for the deal at the company's annual shareholder meeting on Wednesday.
Bezos said that July 5th - the day Amazon was founded in 1994 - would be the date on which Andy Gacy takes over as CEO.
Amazon's Prime Video faces a long list of competitors including Netflix, Disney +, HBO Max, and Apple TV +, and companies have increased spending and expanded in international markets, capturing the pandemic-led shift to online viewing offerings.
The acquisition is the second largest deal in Amazon's history after the acquisition of Whole Foods Market, which it bought for $ 13.7 billion in 2017. Meanwhile, Amazon posted record quarterly profits for the fourth consecutive time in April.
Amazon stock is currently stabilizing around $ 3,262 levels, above a rising trend line and moving averages 50 and 100 levels, and is approaching testing a resistance area around $ 3,300, and with exceeding that level, it may cause the stock to rise, and may target 3,430 levels and then $ 3,480 is the target of the ascending triangle pattern on the 1-hour timeframe.
On the other hand, however, with a break of the uptrend line and trading below the 3,200 levels, it may cause prices to return towards the support level around the $ 3,130 levels.