Amazon buys MGM for a whopping $8.5 billion or just pocket change to Jeff Bezos. Will Bezos be the new Bond?
This morning (Wednesday, May 26th), Amazon and MGM released a statement saying the two have struck a deal. Historically iconic movie studio MGM sold for $8.5 Billion, strengthening its efforts to become the biggest player in Hollywood.
Amazon Buys MGM studios – everything you need to know!
What Does Amazon Buying MGM mean?
The deal will give the both MGM and Amazon a massive archive of film and television titles in order to improve Amazon Prime streaming service.
MGM boasts a library of over 4,000 films and 17,000 TV shows, making it one of the leading entertainment companies in the business. The combination of Amazon and MGM means a greater competing edge against other services like Netflix and Disney+.
Senior VP of Prime Video and Amazon Studios, Mike Hopkins said in a statement “Amazon plans to create new content using MGM’s stable of intellectual property”.
“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.”
Who Else Was interested in MGM?
Amazon wasn’t the only company interested in the movie giant. Both Apple and Comcast were looking to acquire MGM and determined its value to be about $6 billion.
MGM is Amazons 2nd biggest purchase following the acquisition of Whole Foods in 2017 for $13.7 billion.
What can we expect From AMazon buying MGM?
Amazon’s motivation is to be a major force in Hollywood and entertainment combined. Despite is mediocre success with Amazon Studios that launched about 10 years ago, it has shifted its focus on buying from other studios.
Amazon has issued $465 million for the first season of its “Lord of the Rings” television series. Additionally, Amazon plans to expand the Bond franchise into a streaming series. However, the Bond filmmaker, Albert Broccoli will need to give the green light.
Overall, MGM deal will give Amazon a chance to produce more thanks to the MGM library of well-known stories and characters.
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