In an effort to bolster their Prime Video service, Amazon has announced that they have acquired one of cinema’s most legendary movie studios, MGM, to the tune of $8.45 billion. More details within…
Since its founding in 1924, Metro-Goldwyn-Mayer has been the studio responsible for iconic cinematic features such as, Raging Bull, Rocky, Creed, The Pink Panther, Thelma & Louise, and James Bond, just to name a few. Now, these beloved properties will be heading to a new home, as Amazon has purchased MGM for $8.45 billion.
It’s the second-largest purchase Amazon has made in its remarkable history, with first being the $13.7 billion price tag for Whole Foods, back in 2017. However, for a company like Amazon, $8.45 is a small price to pay for the metric ton of content acquired. MGM has a catalog of over 4,000 movies, 17,000 TV shows, and well-known properties from both TV and film that will all become part of Amazon Prime Video.
“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, senior VP of Prime Video and Amazon Studios, “It’s very exciting and provides so many opportunities for high-quality storytelling.”
The purchase, while lucrative for both parties, comes as a surprise to most, as other suitors believe Amazon overpaid for the studio. That’s according to Variety who says that other companies vying for MGM appraised the studio somewhere between $5 billion and $6 billion. These companies cite that it’s partly due to the fact that the James Bond franchise is partially owned by Eon Productions who approve everything from marketing to casting to distribution. Which could spell trouble for Amazon if they wish to premiere the next Bond film, No Time to Die, on their streaming platform.
Despite all of the scrutiny and potential production headaches, the rewards of this acquisition far outweigh the risks. In what has become an Intellectual Property arms race, with the recent WarnerMedia/Discovery merger on top of the Disney/Fox acquisition, Amazon‘s purchase of MGM allows them to stay in the entertainment race.
With properties like “James Bond”, “12 Angry Men,” “Basic Instinct,” “Creed” and “Rocky,” “Legally Blonde,” “Moonstruck,” “Poltergeist,” “Raging Bull,” “Robocop,” “Silence of the Lambs,” “Stargate,” “Thelma & Louise,” “Tomb Raider,” “The Magnificent Seven,” “The Pink Panther,” “The Thomas Crown Affair”, including TV shows “Fargo,” “The Handmaid’s Tale” and “Vikings.”, Amazon now has even more firepower to keep viewers tuned in to Amazon Prime Video.
It’s unclear when the deal will be closed. However, it is assumed that it will be sometime in 2021. MGM will continue to run, but under the Amazon umbrella, once the acquisition is complete.