Amazon to buy MGM Studios for $8.45 billion2021-05-26 18:50 by Daniela
Tags: Amazon, MGM
Amazon is acquiring storied Hollywood studio MGM in a deal worth $8.45 billion in a bid to bolster its streaming catalog. The deal is the second-largest acquisition in Amazon's history, behind its $13.7 billion purchase of Whole Foods in 2017.
"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," said Mike Hopkins, senior vice president of Prime Video and Amazon Studios. "It's very exciting and provides so many opportunities for high-quality storytelling."
"The acquisitions thesis here is really very simple: MGM has a vast, deep catalog of much beloved intellectual property," Bezos said, "and with the talented people at MGM and the talented people at Amazon Studios, we can reimagine and develop that IP for the 21st century."The deal is subject to regulatory approvals and Amazon added that it would "help preserve MGM's heritage and catalogue of films, and provide customers with greater access to these existing works."
The deal is the latest in the media industry that's aimed at boosting streaming services to compete against Netflix and Disney+. AT&T and Discovery announced on May 17 that they would combine media companies, creating a powerhouse that includes HGTV, CNN, Food Network and HBO.
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