Amazon buys Hollywood studio MGM for $8.45 billion

Amazon is acquiring storied Hollywood studio MGM in an offer worth $8.45 billion in a quote to bolster its streaming brochure. The takeover hands it the rights to an eye-watering pool of crowdpleasers consisting of James Bond, Rocky and Robocop. MGM also owns The Hobbit franchise, which should sit well alongside Amazons upcoming Lord of the Rings series for Prime Video. On the TELEVISION side, the studios output consists of recent hits such as The Handmaids Tale and Fargo, in addition to all things under its Epix TV network.
The deal– the second-largest in Amazons history after its $13.7 billion Whole Foods acquisition– belongs to a brand-new wave of media consolidation ushered in by the so-called streaming wars. Currently, weve seen Disney take in 21st Century Fox for $71 billion, assimilating its library into Disney+ and Hulu. While the dust is still settling on the newly-announced merger of HBO Max moms and dad WarnerMedia with Discovery. Together, the two companies spend a massive $20 billion annually on content, a little more than the $17 billion Netflix spends lavishly on originals..
But, while tradition media companies have actually pulled the trigger on huge deals as a method of survival, Big Tech has actually been fairly quiet on the acquisition front. Rumors showing that MGM had an interest in a sale have actually been distributing for years. The studio was previously reported to be in talks with Apple for a takeover that would have valued it at $6 billion. That undoubtedly did not emerge.
For its part, Amazon has given choice to private movie rights and live sports offers over Hollywood takeovers. The business has actually been on a feeding frenzy throughout the pandemic, getting the rights to motion pictures including Coming2America and the follow up to Borat as cinemas stayed shuttered. Jeff Bezos just recently revealed that Prime Video (now ten years old) was enjoyed by over 175 million Prime subscribers in the past year. Amazon likewise owns a totally free, ad-supported streaming service called IMDbTV.All products recommended by Engadget are selected by our editorial team, independent of our parent business. A few of our stories include affiliate links. If you purchase something through one of these links, we might make an affiliate commission.

Amazon is acquiring storied Hollywood studio MGM in an offer worth $8.45 billion in a bid to strengthen its streaming brochure. MGM likewise owns The Hobbit franchise, which ought to sit perfectly together with Amazons upcoming Lord of the Rings series for Prime Video. The deal– the second-largest in Amazons history after its $13.7 billion Whole Foods acquisition– is part of a new wave of media combination ushered in by the so-called streaming wars.

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