Amazon has agreed to buy MGM (Metro Goldwyn Mayer) for $8.45 billion, making it one of the biggest takeovers in entertainment for Amazon yet and the second-biggest acquisition for Amazon overall, behind Whole Foods which Amazon bought for $13.7 billion in 2017.
Metro Goldwyn Mayer has a library of over 4,000 films including James Bond as well as 17,000 TV shows such as Fargo and Vikings, which is where Amazon sees the value of this purchase. Mike Hopkins the senior vice president of Prime Video and Amazon Studios said:
"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."
MGM is most known for its huge titles such as 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 more.
Amazon Prime already has over 200 million subscribers worldwide and over 175 million of them used Amazon Prime Video last year. Adding content from MGM Amazon would create even more value in its Prime subscription. However, not all MGM content will be available on Prime Video because of licencing deals MGM have agreed to, which has content locked up for many years. It is yet to be seen which content from MGM will actually reach Amazon’s streaming service, but most of it is likely.
Amazon has a lot of content planned for the future, including the Lord of the Rings series, costing $465 million to date. With the MGM takeover Amazon will have more content than ever, solidifying its place among rival streaming services such as Netflix.