Amazon to acquire MGM for $8.45 billion

National

FILE – This Sept. 6, 2012, file photo, shows the Amazon logo in Santa Monica, Calif. The company apologized in a late Friday, April 2, 2021 blog post for a tweet it sent to a congressman more than a week ago denying that its employees work so hard they must urinate in empty water bottles. It also admitted that some delivery drivers might have had to urinate in bottles and it vowed to improve their working conditions.(AP Photo/Reed Saxon, File)

(ABC4) – The JBs are united – Jeff Bezos and James Bond, that is.

Amazon is expanding its media arm, announcing it has signed an agreement with MGM, acquiring the company for $8.45 billion.

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While Amazon Studios has focused on producing TV show programming, MGM has been creating films for nearly a century.

MGM will bring titles like ‘Legally Blonde,’ ‘Thelma & Louise,’ ‘The Magnificent Seven,’ and the James Bond franchise to Amazon. Upcoming films like ‘House of Gucci’ and ‘The Addams Family 2’ also belong to MGM.

The company’s catalog of over 4,000 films and 17,000 TV shoes, additionally includes ‘Fargo’ and ‘The Handmaid’s Tale.’

“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. It’s very exciting and provides so many opportunities for high-quality storytelling,” says Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios.

Amazon already has its own streaming service, Prime Video, but MGM does not. It is unclear how the acquisition will immediately affect Prime Video.

Completion of the transaction is subject to approvals and other closing conditions.

This merger comes just over a week after AT&T confirmed a deal to combine its content unit WarnerMedia with Discovery. A new company – separate from AT&T – will be formed that will “compete globally in the fast-growing” world of streaming. 

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