The e-commerce giant makes its biggest foray into Hollywood after days of speculation.
The Amazon company announced on Wednesday the purchase of the Metro-Goldwyn-Mayer (MGM) film studio for US $ 8.45 billion . It’s the second-largest acquisition in its history since it bought Whole Foods in 2017 for $ 13.7 billion.
In a joint statement, the two companies stressed that Amazon “will help preserve the legacy and catalog of films” of the Hollywood studio, which has a content archive with 4,000 titles dating back to the 1920s. This collection includes the James Bond, Pink Panther, RoboCop and Rocky franchises, as well as films such as “The Silence of the Innocents.”
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“The real financial value behind this deal is the hidden treasure of intellectual property in the vast catalog that we plan to reimagine and develop together with the talented team at MGM,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios, in the note.
The acquisition follows investments of around $ 11 billion in content for its streaming video and music services last year alone. “It’s very exciting and offers many opportunities for high-quality storytelling,” added Hopkins.
The proliferation of streaming services, including newer ones like HBO Max and Disney +, has pressured Amazon to buy more programming. Its CEO, Jeff Bezos, has made no secret of his desire to be a movie mogul , and MGM’s vast library provides a wealth of material, not to mention the opportunity to exploit the James Bond and Rocky franchises for new movies and shows. of TV.
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Also, with retail rivals like Walmart Inc. rolling out more sophisticated online stores, Amazon must work even harder to keep its 200 million Prime subscribers loyal.
MGM, owned by hedge funds like Anchorage Capital Group, has been considered a buy target for years, but had never been able to close a sale. The company gave new impetus last year as it reportedly hired consultants to scout for deals.
