Amazon announced Wednesday that it has struck a deal to acquire MGM for $8.45 billion, boosting its ability to become a top player in Hollywood and expanding its online streaming services.
The acquisition is the second-largest deal in Amazon’s history, after its $13.7 billion takeover of Whole Foods in 2017.
MGM, home of the James Bond franchise, has long been one of the biggest studios in Hollywood, with over 4,000 films and 17,000 TV shows, which Amazon will now tap into as part of Amazon Studios, its film and television department.
“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,” 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.”
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The deal signals Amazon’s desire to spend and acquire in order to reach its growing ambitions in the entertainment industry and remain competitive in the increasingly crowded online streaming market.
Streaming giants such as Netflix and Disney have also spent billions to create more original programming and license older content in order to strengthen their online content and keep subscribers on their platform.
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The deal comes hot on the heals of AT&T’s announcement last week that it will combine its content unit, WarnerMedia, with Discovery, the media conglomerate.
