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Amazon Announces to Buy MGM for $8.12 Billion

The news is finally official after a series of rumors about negotiations between Amazon and MGM Studios. Amazon completed the acquisition of the film and television company for $8.45 billion (approximately R $45 billion in the current exchange rate). It is Jeff Bezos’ company’s second-largest investment, trailing only the $13.7 billion purchase of Whole Foods.

Amazon’s acquisition is a step toward competing with other major streaming services such as Netflix and Disney+. Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios, stated in a statement that the purchase will give customers greater access to MGM’s work and allow the studio to “continue its great narrative.”

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.

The purchase is a significant one for the e-commerce behemoth. This is due to MGM’s extensive portfolio of classic and well-known productions, which includes The Hobbit, 007, Stargate, Rocky, and Robocop.

Furthermore, the Hollywood studio owns successful series such as The Handmaid’s Tale and Vikings, as well as the rights to popular reality shows such as Shark Tank and The Voice. Amazon’s streaming service is expected to generate approximately 4,000 movies and 17,000 hours of TV production in total.

By Amber Davis

Amber is a young self-published author with a perchance for writing gaming related contents. When she's not writing or studying she's playing her favorite game Super Mario.