MGM-Amazon Deal Puts Acquisition Target on Independent Studios

Amazon.com Inc.’s acquisition of Metro-Goldwyn-Mayer has turned fresh attention from investors to the fates of independent Hollywood studios that would be a catch for larger streaming players.

In particular, it has put a spotlight on Lions Gate Entertainment Corp. and Sony Pictures Entertainment Inc., which claim a trove of acclaimed movies and beloved characters, much like MGM. And crucially, they might find it similarly tough to go it alone as tech giants move aggressively to conquer the entertainment industry.

While there’s no indication deals are imminent, the logic of mergers may ultimately prevail, with customers increasingly drawn to ...