Amazon has agreed to buy Hollywood studio Metro-Goldwyn-Mayer (MGM) and the deal has been finalised for $8.45 billion.
This would boost Amazon Prime Video’s library with around 4,000 movies and 17,000 tv shows that MGM studios produced. This includes highly rated and popular franchise like James Bond, Rocky and The Hobbit.
The deal comes with the surge of online streaming networks and their popularity. With other streaming platforms like Netflix and Disney+, Amazon would look to reach the top spot by acquiring MGM studios.
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MGM studio is one of the oldest studios in the world, with its inception date going back to 1924. It was started in Beverly Hills, California, a place that has since turned into a cult and now known as Hollywood itself.
However, the MGM studios had been struggling financially especially after the covid pandemic which halted most of its operations and its movies struggled. Moreover, MGM had been changing ownerships in recent years which was making the company function inefficiently.
In addition to the James Bond franchise, MGM owns the rights to film productions including, "Legally Blonde" and "Tomb Raider", and television shows such as "The Handmaid's Tale" and "Real Housewives Of Beverly Hills".
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"The real financial value behind this deal is the treasure trove of IP in the deep catalogue that we plan to reimagine and develop together with MGM's talented team," said Mike Hopkins, senior vice president of Prime Video and Amazon Studios.
With Amazon’s inception, the company would look to integrate its iconic name with the tech giant.
"MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV show programming," a statement from the companies said.
"Amazon will help preserve MGM's heritage and catalogue 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."
Online streaming platforms are on the rise globally with hundreds of millions of users using their services regularly. The pandemic had a great effect on streaming platforms as well, as the viewership soared up in millions. Amazon said its Prime Video subscribers have hit the 175 million mark worldwide.
