Amazon has made one of its largest acquisitions to date, purchasing the iconic movie studio Metro Goldwyn Mayer (MGM) for $8.45 billion. The deal comes as Amazon looks to strengthen the content offerings of its streaming service, Prime Video, against competitors like Netflix and Disney Plus.
The acquisition comes just a few years after MGM emerged from bankruptcy proceedings, and the studio’s extensive library of over 4,000 films and thousands of TV shows will now be available to Prime Video subscribers. The library includes a wide range of classic movies such as the James Bond franchise, Rocky, and The Pink Panther.
Amazon’s acquisition of MGM is expected to make a significant impact on the streaming industry, as it will provide the tech giant with an extensive lineup of original programming to offer subscribers. The deal will also give Amazon access to MGM’s vast talent pool, allowing the company to produce more exclusive content.
The deal is not just about expanding Amazon’s content offerings; it also marks a significant shift in the streaming industry. With Amazon and MGM, a former Hollywood heavyweight, coming together, the acquisition is likely to lead to more consolidation in the industry.
While the deal is expected to face regulatory scrutiny, as all major acquisitions do, Amazon is confident that it will receive the green light. The company plans to close the deal by the end of 2021 and is already looking to add MGM’s content to its lineup.
Before this deal, Amazon’s largest acquisition was its $13.7 billion purchase of Whole Foods in 2017. The acquisition of MGM is a game-changing move for the e-commerce giant and is expected to shift the balance in the streaming industry.