Amazon just got even more powerful.
The Washington Examiner reports that Amazon will purchase the Hollywood studio MGM.
An agreement has been reached
Amazon announced on Wednesday that it had indeed reached an agreement to purchase MGM for $8.45 billion.
The merger agreement is still subject to regulatory approval. But, it is unlikely that there will be any problems there.
Towards the end of last year, MGM was valued at around $5.5 billion. So, the studio would appear to have done fairly well in the agreement. Although, as we will see, so did Amazon.
This is Amazon’s second-largest acquisition ever behind its purchase of Whole Foods. That transaction took place in 2017, and Amazon obtained the company for $13.7 billion, which is quite a bit more than the MGM acquisition.
While announcing the acquisition on Wednesday morning, Amazon explained the “real financial value” behind the acquisition of MGM.
“The real financial value behind this deal is the treasure trove of [intellectual property] in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Mike Hopkins, Amazon’s senior vice president of Prime Video and Amazon Studios, said. “It’s very exciting and provides so many opportunities for high-quality storytelling.”
MGM, of course, is one of the biggest Hollywood studios ever. During its history, it produced over 4,000 films and 17,000 TV shows.
Some of the more well-known movies that the MGM library contains are the James Bond movies, the Rocky and Creed movies, the Legally Blonde movies, and Silence of the Lambs. MGM, though, also owns several movies from Hollywood’s golden age.
Accordingly, what Amazon’s acquisition of MGM will do is allow it to be a major competitor in the streaming entertainment field, which includes the likes of Netflix and Disney+. Amazon has already been making huge gains in this field, and the MGM acquisition is only going to bolster those gains.
“Amazon will help preserve MGM’s heritage and catalog of films, and provide customers with greater access to these existing works,” Amazon said in its statement. “Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling.”