E-commerce giant Amazon today announced it has reached a deal to acquire Hollywood studio MGM in a deal worth $8.45 billion. The deal is a significant addition to Amazon’s streaming catalogue which means it will now be in possession of MGM’s library of over 4,000 films and 17,000 TV shows. With strong competition from Netflix, Disney Plus and HBO, the acquisition means Amazon will be able to attract more subscribers and
Amazon says it will “help preserve MGM’s heritage and catalogue of films, and provide customers with greater access to these existing works.” Through the acquisition, the company “would empower MGM to continue to do what they do best: great storytelling.” MGM owns The Hobbit franchise and is also the studio behind James Bond, Vikings, Rocky and Robocop. The library also includes 12 Angry Men, Basic Instinct, Legally Blonde, Stargate and Tomb Raider.
“The real financial value behind this deal is the treasure trove of IP in the deep catalogue that we plan to reimagine and develop together with MGM’s talented team,” said Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios.“It’s very exciting and provides so many opportunities for high-quality storytelling.”
As movie industries prepare to go back to theatres, Amazon has been doing well and got the streaming rights to Coming2America and the sequel to Borat. CEO Jeff Bezos recently revealed more than 175 million Prime members streamed TV shows and movies in the past year.