MGM Joins Amazon, $8.5 Billion Merger Complete
Back in May 2021, Amazon offered MGM $8.5 billion in exchange for MGM’s 4,000 films and 17,000 hours of television. As of today, the deal has closed and MGM has officially joined Amazon.
“MGM has a nearly century-long legacy of producing exceptional entertainment, and we share their commitment to delivering a broad slate of original films and television shows to a global audience,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios. “We welcome MGM employees, creators, and talent to Prime Video and Amazon Studios, and we look forward to working together to create even more opportunities to deliver quality storytelling to our customers.”
Chris Brearton, chief operating officer of MGM, said, “We are excited for MGM and its bounty of iconic brands, legendary films and television series, and our incredible team and creative partners to join the Prime Video family. MGM has been responsible for the creation of some of the most well-known and critically acclaimed films and television series of the past century. We look forward to continuing that tradition as we head into this next chapter, coming together with the great team at Prime Video and Amazon Studios to provide audiences with the very best in entertainment for years to come.”
While it was expected that the U.S. Federal Trade Commission would file to block the merger or impose conditions, this has not been the case that looks promising for the other mega-combo of WarnerMedia and Discovery set for April. Earlier this week, Amazon won EU antitrust approval for its acquisition of the U.S. movie studio. The European Commission decided the deal wouldn’t pose competition concerns in Europe.
This deal is the first marriage of a big tech company and a Hollywood studio. It also marks Amazon’s second-largest acquisition to date, the first being its purchase of Whole Foods in 2017 for approximately $13 billion.
Amazon founder Jeff Bezos announced the deal and said it was driven by IP. He promised to “help preserve MGM’s heritage and catalog of films, and to provide customers with greater access to these existing works.” In addition, Amazon will “empower MGM to continue to do what they do best, great storytelling.”
The century-old studio is behind the James Bond and Rocky franchises as well as a steady source of new production. Its massive library includes titles like “12 Angry Men,” “Basic Instinct, Creed,” “Legally Blonde,” “Moonstruck,” “Poltergeist,” “Raging Bull,” “Robocop,” “Silence of the Lambs,” “Thelma & Louise,” “Tomb Raider,” “The Magnificent Seven,” “The Pink Panther,” and tons more.
Amazon has nabbed a Best Picture Oscar nomination for Aaron Sorkin’s “Being the Ricardos” with Nicole Kidman and Javier Bardem. In September, the streamer will launch the first of five planned seasons of “The Lord Of The Rings: The Ring of Power.”
Amazon Prime Video
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