Amazon boosts its streaming business with $8.45 billion MGM deal

Bezos buys Bond, Bilbo Baggins, and Balboa

Amazon logo on a window

Amazon has announced it will acquire Hollywood studio Metro-Goldwyn-Mayer (MGM) in a deal worth $8.45 billion to boost its Prime video streaming business.

MGM, founded in 1924, is home to blockbuster franchises past and present, including James Bond, the Rocky movies, and The Hobbit and Lord of the Rings franchises.

"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," SVP of Prime Video and Amazon Studios, Mike Hopkins, said in a press statement. "It's very exciting and provides so many opportunities for high-quality storytelling."

Hopkins also said MGM productions have racked up more than 180 Oscars and 100 Emmys. MGM has around 800 employees worldwide.

While the deal means Amazon will get its hands on MGM's recent movies and around 17,000 television shows, it won't get any films from before 1986, which are still owned by Warner Bros. It also won't get MGM's huge production lot, which is now occupied by Sony Pictures.

Amazon will only own half of the James Bond franchise — the other half belongs to Barbara Broccoli and her brother, Michael G. Wilson, who also retain complete creative control over the franchise.

Related Resource

Creating a sense of value for your workforce

Sample our exclusive Business Briefing content

Creating a sense of value for your workforce - The Business Briefing from IT ProDownload now

MGM Chairman of the Board of Directors Kevin Ulrich said in a statement that he was "very proud that MGM's Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision".

"The opportunity to align MGM's storied history with Amazon is an inspiring combination," he added.

Amazon outbid competitors, such as Apple and Comcast, by offering 40% more cash, according to reports from the New York Times. MGM has been quietly shopped around by financial institutions for prospective buyers for months now.

The MGM deal is Amazon's second biggest, following only its Whole Foods acquisition in 2017 for $13.7 billion. The deal follows AT&T's decision this month to merge Warner Media with Discovery to create a movie and TV company worth more than $130 billion.

The acquisition is subject to regulatory approvals. If approved, MGM will join Amazon's other entertainment, including IMDb TV, Twitch, and Box Office Mojo.

Featured Resources

The definitive guide to warehouse efficiency

Get your free guide to creating efficiencies in the warehouse

Free download

The total economic impact™ of Datto

Cost savings and business benefits of using Datto Integrated Solutions

Download now

Three-step guide to modern customer experience

Support the critical role CX plays in your business

Free download

Ransomware report

The global state of the channel

Download now

Recommended

Infosys selects AWS to develop next-gen quantum computing applications
high-performance computing (HPC)

Infosys selects AWS to develop next-gen quantum computing applications

22 Sep 2021
AWS to launch cloud services reseller in Australia
Amazon Web Services (AWS)

AWS to launch cloud services reseller in Australia

17 Sep 2021
Senators accuse Amazon of mistreating pregnant workers
Policy & legislation

Senators accuse Amazon of mistreating pregnant workers

10 Sep 2021
Amazon to pay college tuition fees for 750,000 front-line employees
Careers & training

Amazon to pay college tuition fees for 750,000 front-line employees

10 Sep 2021

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

17 Sep 2021
What are the pros and cons of AI?
machine learning

What are the pros and cons of AI?

8 Sep 2021
London ranks second to Silicon Valley as world's best startup hub
startups

London ranks second to Silicon Valley as world's best startup hub

22 Sep 2021