Amazon announced that it had acquired MGM for $8.45 billion, in a move aimed at expanding its content offerings for Amazon Prime Video. The acquisition gives Amazon access to MGM’s extensive library of films and TV shows, including franchises such as James Bond, Rocky, and The Hobbit.
The deal is Amazon’s second-largest acquisition ever, after its $13.7 billion purchase of Whole Foods in 2017. Amazon’s CEO, Jeff Bezos, stated that the acquisition will provide Amazon with more opportunities to serve customers and innovate on behalf of customers.
MGM, which was founded in 1924, is one of the oldest and most storied film studios in Hollywood. The studio has produced many classic films, including The Wizard of Oz, Gone with the Wind, and The Silence of the Lambs. In recent years, MGM has shifted its focus to television production, with hits such as The Handmaid’s Tale and Fargo.
Amazon’s acquisition of MGM is expected to strengthen its position in the highly competitive streaming video market, where it faces stiff competition from rivals such as Netflix, Disney+, and HBO Max. With access to MGM’s library of content, Amazon can offer its subscribers a wider range of choices and attract new customers to its platform. The deal is also expected to increase the demand for Amazon Prime Video, which has become an important part of Amazon’s overall business strategy.
