Amazon to buy MGM Studios for $8.45 Billion
Amazon is buying the MGM studios for $8.45 billion, the two companies said on Wednesday, giving the US tech giant a vast library to further consolidate its hold in streaming.
The deal bolsters Amazon Prime Video, which competes with Netflix and others in the fast-evolving market; it will have access to some 4,000 films, including the James Bond franchise, and 17,000 television shows.
This will be the company's second-largest acquisition after it bought grocer Whole Foods for nearly $14 billion in 2017.
Amazon doesn’t say how many people watch its Prime Video service. But more than 200 million have access to it because they’re signed up for its Prime membership, which gives them faster shipping and other perks. Besides Prime Video, Amazon also has a free streaming service called IMDb TV, where Amazon makes money by playing ads during movies and shows.
Known for its roaring lion logo, MGM is one of the oldest Hollywood studios, founded in 1924 when films were silent. It has a long list of classics in its library, including “Singin’ in the Rain." More recent productions include reality TV staples “Shark Tank" and “The Real Housewives of Beverly Hills," as well as the upcoming James Bond movie “No Time to Die" and an Aretha Franklin biopic called “Respect."
Amazon already has its own studio but has had mixed results. Two of its shows, “The Marvelous Mrs. Maisel" and “Fleabag," won best comedy series Emmys.
But many of its films have failed to click with audiences at the box office. Recently, Amazon has been spending on sports and splashy shows. It will stream “Thursday Night Football" next year and is producing a “Lord of the Rings" show, which reportedly cost $450 million for its first season alone. The deal, which is subject to customary approvals, will make Amazon, already one of the most power ful and valuable companies in the world, even bigger. Amazon, founded in 1995 as an online bookstore, has become a $1.6 trillion behemoth that does a little bit of ever ything.