AMAZON BUYS MGM STUDIOS, ROSS VIDEO TO ENABLE AUGMENTED REALITY GRAPHICS FOR NBC OLYMPICS, STARZPLAY ARABIA ESTABLISHES NEW HEADQUARTERS IN ABU DHABI AND MORE

Amazon recently acquired renowned production and global distribution fi rm, Metro- Goldwyn-Mayer for $8.45 billion. This is Amazon’s second-largest acquisition following its purchase of Whole Foods for $13.7 billion in 2017.

MGM owns several landmark franchises including James Bond, Rocky and Legally Blonde. Alongside Netfl ix and Disney, Amazon’s landmark move marks an interest in adding more value to content libraries and winning more subscribers.

All the leading streaming platforms have been dedicating billions towards the expansion of licensed content and original programming. The deal marks a significant interest in remaining competitive within the crowd streaming markets.

The acquisition also speaks of Amazon’s ambitious goals to become a big force in Hollywood. The company also announced a potential launch of a new global media and entertainment division by Jeff Blackburn, one of its high ranking professionals. Additionally, Amazon has allocated up to $ 465 million for the fi rst season of Lord of the Rings.

In a press release, Mike Hopkins, Senior Vice President, Prime Video and Amazon Studios expressed Amazon’s plans to generate new content with MGM’s current stable intellectual property. “It’s very exciting and provides so many opportunities for high- quality storytelling,” he said.

Despite the launch of Amazon Studios a decade ago, the company has not seen much success with original creations. The deal is said to ramp up growth for the e- commerce and cloud computing giant within the entertainment sphere through increased in-house hits.

It also comes at a time when media owners have been undergoing consolidations to keep up with OTT providers. The recent $ 43 billion deal between Discovery and WarnerMedia is an example. Many industry insiders also predict that ViacomCBS, Fox Corp., Lionsgate and AMC may soon be acquired in the coming years.

Financially, the MGM and Amazon deal is a win for the former which was reportedly valued at $5.5 billion as of last year end. It has been for sale since December.