Amazon has announced a deal to acquire media and entertainment giant Metro-Goldwyn-Mayer Studios (MGM) for $8.45 billion. Both giant corporations revealed that they entered a definitive merger agreement which was based on MGM’s history of filmmaking being complimentary to the work of Amazon Studios.
TOS News gathered Amazon would “help preserve MGM’s heritage and catalog of films” and “empower MGM to continue to do what they do best: great storytelling.”
MGM stands as one of the world’s oldest film studios, boasting of a catalog of 4,000 films and 17,000 TV shows, including the James Bond series of movies, Rocky (1977), Moonstruck (1987), and Silence of the Lambs (1991).
At Amazon’s annual shareholder meeting, CEO Jeff Bezos described the acquisition thesis in simple terms: “MGM has a vast, deep catalog of much beloved intellectual property and with the talented people at MGM, and the talented people at Amazon Studios, we can reimagine and develop that for the 21st century.”
Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios explained the interest motivating the deal as “the treasure trove of Intellectual Property in the deep catalog that we plan to reimagine and develop together with MGM’s talented team.” The Chairman of the Board of Directors of MGM, Kevin Ulrich, described the alignment as “an inspiring combination.”
For Amazon, this purchase is viewed as a necessary step to boost its Amazon Prime Video content library in the expanding streaming video industry.
The deal between Amazon and MGM is subject to regulatory approval. Senator Amy Klobuchar and Representative Ken Buck, Senior member of the House antitrust subcommittee have expressed concern by asking for the deal to be scrutinized properly because it will have an impact on millions of customers.