AMAZON BUYS MGM FOR $8.45 BILLION

Wed 26 May 2021:

Amazon announced on Wednesday that it has entered into a definitive merger agreement to acquire American media company Metro-Goldwyn-Mayer (MGM) for $8.45 billion.

The US e-commerce firm wants to benefit from MGM’s filmmaking expertise and catalog of 4,000 films and 17,000 television shows, including James Bond, Fargo and Vikings, to support its movie and television division, it said in a statement.

As the video streaming business has become more competitive during the coronavirus pandemic because of lockdowns, Amazon is trying to challenge Netflix and compete with Disney, while it aims to get more subscribers through richer libraries and new content.

“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,” Senior Vice President of Prime Video and Amazon Studios Mike Hopkins said in the statement.

MGM Chairman Kevin Ulrich said: “The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”

Founded in 1924, MGM is one of the oldest film studios in Hollywood, mostly involved in the production and distribution of feature films and television programs.

The deal marks Amazon’s second-largest acquisition in company history after its $13.7 billion purchase of American supermarket chain Whole Foods in 2017.

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