Amazon has announced it will acquire Hollywood studio Metro-Goldwyn-Mayer (MGM) in a deal worth $8.45 billion to boost its Prime video streaming business.
MGM, founded in 1924, is home to blockbuster franchises past and present, including James Bond, the Rocky movies, and The Hobbit and Lord of the Rings franchises.
"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," SVP of Prime Video and Amazon Studios, Mike Hopkins, said in a press statement. "It's very exciting and provides so many opportunities for high-quality storytelling."
Hopkins also said MGM productions have racked up more than 180 Oscars and 100 Emmys. MGM has around 800 employees worldwide.
While the deal means Amazon will get its hands on MGM's recent movies and around 17,000 television shows, it won't get any films from before 1986, which are still owned by Warner Bros. It also won't get MGM's huge production lot, which is now occupied by Sony Pictures.
Amazon will only own half of the James Bond franchise — the other half belongs to Barbara Broccoli and her brother, Michael G. Wilson, who also retain complete creative control over the franchise.
RELATED RESOURCE
Creating a sense of value for your workforce
Sample our exclusive Business Briefing content
MGM Chairman of the Board of Directors Kevin Ulrich said in a statement that he was "very proud that MGM's Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision".
"The opportunity to align MGM's storied history with Amazon is an inspiring combination," he added.
Amazon outbid competitors, such as Apple and Comcast, by offering 40% more cash, according to reports from the New York Times. MGM has been quietly shopped around by financial institutions for prospective buyers for months now.
The MGM deal is Amazon's second biggest, following only its Whole Foods acquisition in 2017 for $13.7 billion. The deal follows AT&T's decision this month to merge Warner Media with Discovery to create a movie and TV company worth more than $130 billion.
The acquisition is subject to regulatory approvals. If approved, MGM will join Amazon's other entertainment, including IMDb TV, Twitch, and Box Office Mojo.
-
Bigger salaries, more burnout: Is the CISO role in crisis?In-depth CISOs are more stressed than ever before – but why is this and what can be done?
-
Cheap cyber crime kits can be bought on the dark web for less than $25News Research from NordVPN shows phishing kits are now widely available on the dark web and via messaging apps like Telegram, and are often selling for less than $25.
-
‘If you want to look like a flesh-bound chatbot, then by all means use an AI teleprompter’: Amazon banned candidates from using AI tools during interviews – here’s why you should never use them to secure a jobNews Amazon has banned the use of AI tools during the interview process – and it’s not the only major firm cracking down on the trend.
-
Amazon's RTO mandate could spark a talent exodusNews A survey of Amazon staff suggests plenty remain unhappy about returning to the office next year
-
Amazon's RTO mandate just hit a major roadblock – it doesn’t have enough office spaceNews The company has told staff in several locations that it won't have room for them all in time
-
“There are other companies around”: AWS CEO Matt Garman says employees pushing back on RTO mandates should quitNews AWS CEO Matt Garman says employees pushing back on RTO mandates should quit
-
Business execs just said the quiet part out loud on RTO mandates — A quarter admit forcing staff back into the office was meant to make them quitNews Companies know staff don't want to go back to the office, and that may be part of their plan with RTO mandates
-
Microsoft tells staff it won’t follow Amazon or Dell on enforcing a return to the office – but there’s a catchNews While other big tech companies are forcing reluctant workforces back into the office, Microsoft isn’t following suit
-
Amazon workers aren’t happy with the company’s controversial RTO scheme – and they’re making their voices heardNews An internal staff survey at Amazon shows many workers are unhappy about the prospect of a full return to the office
-
Amazon set a goal to reach 100% renewable energy by 2030 – it reached it seven years earlyNews The tech giant has rapidly accelerated renewable energy investment in recent years
