Amazon has acquired film studio Metro Goldwyn Mayer (MGM) for $8.45 billion in a deal which will dramatically increase its Prime Video streaming services offering.
Following reports last week that Amazon was in talks to buy the struggling film studio, which has seen revenues plummet while cinemas have been closed during lockdown, the retail giant has now completed the acquisition.
While more than 175 million people watched Prime Video last year, seeing streaming numbers jump 70 per cent, the studio has focused largely on creating exclusive television series like The Grand Tour.
Now it will be able to offer a vast array of films from MGM’s near 100-year back catalogue, featuring some of Hollywood’s biggest films and franchises, accounting for a total 177 Oscars during its history.
“MGM has a vast, deep catalog of much beloved intellectual property,” Amazon chief executive Jeff Bezos said.
“With the talented people at MGM and the talented people at Amazon Studios, we can reimagine and develop that IP for the 21st century.”
The multi-billion-dollar deal is Amazon’s second biggest acquisition to date after Whole Foods, which it purchased for $13.7 billion in 2017.
It is understood that this is roughly 37 times MGM’s estimated profits would have been for this year.
MGM owns the rights to franchises including James Bond, Rocky, Tomb Raider and Robocop alongside ongoing TV series including The Handmaids Tale, Fargo and Vikings.