Amazon is flourishing in its foray into the entertainment industry, with Oscar-winning movie releases and, now, the acquisition of MGM – one of Hollywood’s most iconic studios. The monumental $8.45bn acquisition means that Amazon will expand its Prime Videos catalog extensively, positioning it as the go-to live streaming service for fans of all genres.
“[The latest acquisition] is very exciting and provides so many opportunities for high-quality storytelling,” said an Amazon executive during the official announcement of the deal. With the deal, Amazon Prime Video’s catalog will now be updated with some 4,000 films, including the James Bond collection, as well as 17,000 television shows, including The Handmaid’s Tale series.
“The real financial value behind this deal is the treasure trove of Intellectual Property in the deep catalog that we plan to re-imagine and develop together with MGM’s talented team,” disclosed Mike Hopkins, senior vice president of Prime Video and Amazon Studios.
Reports suggest that the deal has been in the works for over a year now, with executives of MGM Holdings, the parent company of MGM, exploring sales options since 2020. For MGM, this deal implies that the studio, which is nearly a century old, will “continue to do what they do best: great storytelling,” in the face of sweeping changes currently disrupting the entertainment landscape as streamed content continues on the rise.
“I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history,” said Kevin Ulrich, Chairman of the Board of Directors of MGM.
“The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”
Binge-watching has been on a constant rise as people are forced to spend more time at home, and Amazon is betting big time on this trend.
“Amazon is seeking to become a more prominent player in the entertainment world, and there’s no better way to do that than by buying one of the most iconic movie studios in Hollywood,” revealed Jesse Cohen, a senior financial analyst at Investing.com.
“It’s all about content as the streaming war heats up.”