Amazon acquires MGM for whopping $8.45 billion to bolster its Prime membership offering

Amazon acquires MGM
Amazon buys MGM for $8.45 billion giving the company access to an extensive library of TV shows and films, including the James Bond franchise

Metro-Goldwyn-Mayer (MGM) has been scooped up by online shopping major, Amazon for $8.45 billion. The acquisition of the roaring lion logo will allow Amazon’s Prime membership offerings to take on Disney Plus and Netflix by leveraging studio’s catalog of 4,000 films and 17,000 TV shows. This is the second biggest deal made by Jeff Bezos’s company, behind a $13.7 billon acquisition of Whole Foods in 2017. Also Read: News Corp to acquire Investor’s Business Daily for $275-mn to focus on digital and subscriptions

Reason: The acquisition of MGM, the 97-year-old film and television studio, will allow Amazon to strengthen its offerings and increase the amount of content it would own and be able to license to other TV networks or streamers. Also Read: Twilio acquires CPaaS player ValueFirst

  • Media industry has witnessed consolidation and Amazon wants to remain a force. Earlier on May 17, AT&T and Discovery merged in a $43 billion deal to create a powerhouse that includes HGTV, CNN, Food Network and HBO.. In 2019, Disney paid $71 billion deal for Fox entertainment assets
  • Buying MGM would give Amazon access to more movies, TV shows and well-known characters, including James Bond, Rocky, RoboCop and Pink Panther.
  • Acquisition will give Amazon access to cable channels like Epix

What’re they saying: MGM Chairman Kevin Ulrich said in a statement, “The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”

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 in the deep catalog that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling.”

The deal is subject to customary approvals.

Also Read: Sony revises profit forecast to $10-bn fueled by PlayStation Plus subscription service, hit anime film ‘Demon Slayer’

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