Bulletin: Amazon.com Inc. Bolsters Its Ecosystem By Acquiring MGM

NEW YORK (S&P Global Ratings) May 26, 2021--S&P Global Ratings today said that it views Amazon.com Inc.'s (AA-/Stable/A-1+) announced acquisition of Metro-Goldwyn-Mayer Inc. (MGM; B/Stable/--) for $8.45 billion as complementary to the company's Prime Video and Amazon Studios operations. The size of the transaction is manageable in the context of Amazon's sizable cash balance ($73.3 billion as of March 31, 2021). MGM has a vast catalog of more than 4,000 films and 17,000 TV shows, including over 280 award-winning productions. This acquisition will bolster Amazon's proprietary content for its Prime membership offering and support the program's continued expansion. Amazon has consistently expanded its Prime subscription business by more than 30% annually. We believe Amazon will continue to invest in its

...May 26, 2021 NEW YORK (S&P Global Ratings) May 26, 2021--S&P Global Ratings today said that it views Amazon.com Inc.'s (##-/Stable/A-1+) announced acquisition of Metro-Goldwyn-Mayer Inc. (MGM; B/Stable/--) for $8.45 billion as complementary to the company's Prime Video and Amazon Studios operations. The size of the transaction is manageable in the context of Amazon's sizable cash balance ($73.3 billion as of March 31, 2021). MGM has a vast catalog of more than 4,000 films and 17,000 TV shows, including over 280 award-winning productions. This acquisition will bolster Amazon's proprietary content for its Prime membership offering and support the program's continued expansion. Amazon has consistently expanded its Prime subscription business by more than 30% annually. We believe Amazon will continue to invest in its entertainment offerings and delivery capability to attract new subscribers. We don't expect this acquisition to have a material affect on the company's financials given its substantial...

Bulletin