Amazon buys MGM Studios for $8.45 billion
Yesterday, we reported that Amazon was nearing a deal to acquire Hollywood studio MGM Holdings in a deal that valued the co-owner of the James Bond franchise and other film and TV series, for between $8.5 billion and $9 billion, according to several published reports.
This morning, Amazon announced that it will acquire MGM Studios for $8.45 billion to take on Netflix, Disney, and other streaming video services. The deal marks the boldest move yet into the entertainment industry and turbocharging its streaming ambitions.
Amazon said it hopes to leverage MGM’s storied filmmaking history and wide-ranging catalog of 4,000 films and 17,000 TV shows to help bolster Amazon Studios, its film and TV division.
MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV show programming. Amazon will help preserve MGM’s heritage and catalog of films, and provide customers with greater access to these existing works. Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling.
“MGM has a vast catalog with more than 4,000 films—12 Angry Men, Basic Instinct, Creed, James Bond, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and many other icons—as well as 17,000 TV shows—including Fargo, The Handmaid’s Tale, and Vikings—that have collectively won more than 180 Academy Awards and 100 Emmys,” said Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios. “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.”
Founded in 1924 by Louis B. Mayer and Marcus Loew, MGM is involved primarily in the production and distribution of feature films and television programs. MGM was later acquired on September 23, 2004, by a partnership consisting of Sony Corporation of America, Comcast, Texas Pacific Group (now TPG Capital, L.P.), Providence Equity Partners, and other investors.
The company owns a number of popular reality TV shows, including “Shark Tank,” “Survivor,” “The Real Housewives” series, and “The Voice.” MGM also owns Epix, a premium pay-TV service valued at about $1.3 billion as of 2017.