Strategic diversification through acquisition : The move of Amazon to acquire Metro-Goldwyn-Mayer [MGM]

Companies in their groth policies have many choicies depending on their availalble resources. In this paper, Amazon. In fact, Amazon’s desire is to be a bigger player in Hollywood could involve the acquisition of the American company Metro-Goldwyn-Mayer. The ongoing discussions between the tech giant and the historic film and television studio explains Amazon strategic move to acquire a company specialised in a domain which is not Amazon main area of expertise; a sector that could increases Amazon revenues in the future. Amazon has already established itself as a significant entertainment force with content it creates and acquires through Amazon Studios and that it broadcasts via its Prime Video streaming service. Metro Goldwyn Mayer would bring with it a major film library, which includes the James Bond franchise, as well as television shows such as “The Handmaid’s Tale” and “Fargo,” and reality shows such as “Shark Tank” and “Survivor,” a potential deal at between $7 billion and $10 billion.To be ready for the move, Amazon is shaving more than 200 million Prime members worldwide with 175 million of Prime Vidéo content. Amazon wants to turn Prime Video into an even bigger habit for customers worldwide, and a quick way to do that would be to stir MGM’s extensive library of titles into the mix. It is not a secret that other tech and media giants have been sniffing around MGM for some time. The Technology giant prepared the move by tapping Jeff Blackburn, a former high-ranking executive who recently exited the ecommerce giant, to return to Amazon in a new role overseeing a consolidated global media and entertainment group. In fine, the sale of MGM to Amazon could signal the tech company's move to expand its Amazon Prime streaming inventory to include MGM's extensive array of big-name movies and TV shows. These include the James Bond, Hobbit, Rocky, and Pink Panther franchises alongside "Legally Blonde" and "A Star Is Born." Based on professor Alain Ndedi researches in intrapreneurship and strategic management, and Professor Philip Kotler insights in strategic marketing, this article demonstrates how a strategic diversification through acquisition by Amazon to acquire Metro-Goldwyn-Mayer (MGM) could be a strategic move for Amazon strategic growth