Amazon finally acquired Hollywood studio MGM for $8.45 billion today (27th May). The price paid by Amazon is about 40% more than what Apple and Comcast had shown willingness to pay for the studio which has in its library such landmark franchises and films as James Bond, Rocky, Tomb Raider and The Silence Of The Lambs. MGM has around 4,000 films and 17,000 television shows including the landmark Fargo and Shark Tank.
The deal grants only 50% ownership of the 007 Bond franchise because the balance 50% is held by producers Barbara Broccoli and brother Michael G. Wilson. The deal brings e-commerce giant Amazon in a more competitive space vis-à-vis competitors like Netflix and Disney+. After this deal, Amazon, among other things, aims to increase its retail sales as it bundles fast delivery service with its Prime Video streaming subscription. Amazon founder Jeff Bezos and senior vice president of Prime Video and Amazon Studios, Mike Hopkins, also plan to reimagine and develop the treasure trove of the huge catalogue together with MGM’s talented team.
MGM, started in 1924, has been through ownership changes and bankruptcy in recent years. The Hollywood studio started a sale process in December last year, when its value was estimated at about $5.5 billion.
