MGM Acquisition Price Could Be Paid By A $5 Increase in's (AMZN) Prime Video Yearly Fee - BofA Securities

May 25, 2021 8:44 AM EDT
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Price: $137.83 -1.13%

Rating Summary:
    57 Buy, 4 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 42 | New: 10
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BofA Securities analyst Justin Post reiterated a Buy rating and $4,360.00 price target on (NASDAQ: AMZN) expecting the MGM acquisition to boost the value of a Prime membership and could lead to an increase in the monthly cost. MGM's IP catalog includes 4,000+ films (with 181 Academy Awards), and 17k+ Television episodes (with 100 Emmy Awards). New MGM movies and TV shows could be released directly onto the Prime Video platform.

The analyst stated "The $9bn potential acquisition of MGM would be Amazon’s largest investment in content thus far (and likely a higher price than others suitors would pay), but could be financially attractive if incorporating MGM content can drive more Prime memberships, justify a $5 per year Prime Subscriber fee increase in Western markets, or help ensure Prime remains a top-5 streaming platform in a consolidating industry."

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Shares of closed at $3244.99 yesterday.

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