Amazon Buys MGM for $8.45 Billion
Amazon has announced that it will acquire the film and TV studio MGM for $8.45 billion, in a move that expands the e-commerce giant’s content offerings and strengthens its position in the streaming market.
MGM, which was founded in 1924 and is known for producing classic films such as the James Bond franchise and Rocky, has a library of more than 4,000 films and 17,000 TV shows. The acquisition will give Amazon access to this vast library, as well as MGM’s production capabilities and talent pool.
The move comes as Amazon faces increasing competition in the streaming market, with rivals such as Netflix and Disney+ investing heavily in original content. The acquisition of MGM is expected to boost Amazon’s content offerings, with the company planning to use MGM’s intellectual property to create new content for its Prime Video service.
In a statement, Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios, said, “The real financial value behind this deal is the treasure trove of IP [intellectual property] in the deep catalog that we plan to reimagine and develop together with MGM’s talented team.”
The acquisition is subject to regulatory approvals and is expected to close in the second half of 2021. If approved, it will be Amazon’s second-largest acquisition to date, after its $13.7 billion purchase of Whole Foods in 2017.
The move is also expected to have wider implications for the entertainment industry, with analysts predicting that it could trigger further consolidation in the sector as companies seek to compete with the content offerings of tech giants like Amazon.