by Thomas Catenacci
Amazon acquired MGM Studios for $8.45 billion in a mega deal that will bolster Amazon’s entertainment profile, the companies announced Wednesday morning.
The deal will allow Amazon to give its subscribers access to MGM Studios’ entire portfolio of movies and television shows, according to the announcement. MGM Studios’ content library includes more than 4,000 films and 17,000 television shows.
“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,” Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said in a statement. “It’s very exciting and provides so many opportunities for high-quality storytelling.”
MGM Studios has won more than 180 Academy Awards and 100 Emmys, Hopkins noted. The Hollywood studio has produced acclaimed films such as “12 Angry Men,” “James Bond,” “Robocop,” “Rocky,” “Silence of the Lambs” and “The Pink Panther,” as well as television shows including “The Handmaid’s Tale” and “Vikings.”
“I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history,” MGM Chairman Kevin Ulrich said in a statement Wednesday.
“The opportunity to align MGM’s storied history with Amazon is an inspiring combination,” he continued.
Amazon’s purchase of MGM Studios represents the company’s willingness to continue to invest in its streaming and content services. The company spent $11 billion on Prime Video and Music content in 2020, a 41% increase compared to 2019, Variety reported.
Amazon also signed a 10-year deal with NFL to exclusively stream 15 games per season earlier this month, The Wall Street Journal reported. The deal is worth $1.2 billion per year.
The deal Wednesday marked Amazon’s second-largest acquisition ever, only behind its $13.7 billion purchase of Whole Foods in 2017, according to CNBC. MGM Studios has reportedly sought a buyer for years.
Last week, AT&T announced a $43 billion merger between its media branch WarnerMedia and Discovery. Executives of the two corporations said they hoped the deal would make the new media company a top streaming service.
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Thomas Catenacci is a reporter at Daily Caller News Foundation.