Amazon buys MGM for $8.45 billion 

The e-commerce giant Amazon’s biggest entertainment acquisition will be Metro Goldwyn Myer(MGM). Jeff Bezos’s Amazon buys MGM for $8.45 billion, the company announced today. 

It is going to be a significant acquisition for the e-commerce giant, and reportedly it will own a library that consists of around 4,000 films and 17,000 hours of TV program. 

Amazon buys MGM, the acquisition will create a huge buzz in the market and it will help Amazon attract even more big-spending Prime subscribers and will compete with Netflix and Disney Plus.

MGM is perhaps most notable for being the Hollywood studio behind the James Bond and Rocky franchises, but its library runs the gamut from classic films like 12 Angry Men to modern TV shows like The Handmaid’s Tale and Vikings. MGM’s library also includes unscripted TV shows like The Voice and Shark Tank. 

Amazon buys MGM for a $8.45 billion deal, which can prove a huge success and profit making investment for Amazon.

Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said in a statement. “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,” 

Amazon’s possible acquisition of MGM first came to public in mid-May in various reports. Currently, 200 million-plus people worldwide subscribed to Amazon Prime and over 175 million streamed video last year. Adding more films and TV shows made by MGM could be a boom for both figures.

MGM is currently owned by a collection of private equity firms, including Anchorage Capital Group, Highland Capital Management, and Solus Alternative Asset Management. Reports that MGM was up for sale emerged last December.