Amazon takes over MGM

Amazon has bought MGM for $8.45 billion in a deal that will see the retail giant get access to an extensive film and TV show catalog to add to its Prime Video content.

CNN’s Frank Pallotta reported:

Amazon (AMZN) is investing even more heavily in growing its position in the entertainment world. The company announced Wednesday that it made a deal to acquire MGM, the home of James Bond and one of the most iconic movie studios in Hollywood.

The deal, which is valued at $8.45 billion, gives Amazon an extensive library of film and TV shows that it can use to fill out its Prime Video content coffers. MGM has a catalog with more than 4,000 films and 17,000 TV shows, according to Mike Hopkins, who heads Prime Video and Amazon Studios.

Reuters’ Jeffrey Dastin wrote:

The deal aims to bolster Amazon’s television-focused studio with new and historic filmmaking from MGM, which has snapped up lucrative series including “Rocky” and “Tomb Raider” since its founding in 1924.

Streaming video helps the world’s largest online retailer draw people to subscribe to Prime, a club with fast shipping, and to shop more once they’re members. Privately-held MGM, or Metro Goldwyn Mayer, also owns the Epix cable channel and makes popular TV shows including “Fargo,” “Vikings” and “Shark Tank.”

Annie Palmer from CNBC noted:

The deal emphasizes Amazon’s willingness to spend deeply to remain competitive in the crowded streaming market. Amazon, Netflix, Disney and other video streaming services have been looking to beef up their content libraries to win over subscribers, committing billions toward licensing content and developing original programming.