E-commerce giant Amazon has reportedly inked a definitive merger agreement to acquire Hollywood studio Metro-Goldwyn-Mayer (MGM) for $8.45 billion.
Mike Hopkins, senior VP, Prime Video and Amazon Studios, stated that the real financial value in this deal would be the stockpile of intellectual property in the extensive catalog that they intend to reimagine and develop in tandem with MGM’s team, as per reports.
While announcing the deal, Hopkins further added that the deal offers numerous opportunities for “high-quality storytelling”.
MGM strongly boasts about its extensive collection of over 4,000 films and 17,000 TV shows. This deal would give Amazon a way to boost Prime Video with an abundance of well-known entertainment titles, claim reports.
Additionally, Amazon has also been looking forward to being able to dig through MGM properties like Rocky, the Pink Panther, and the 007 franchises for new originals, claim reliable sources.
This agreement supposedly marks the second-biggest acquisition for Amazon following its $13.7 billion acquisition of Whole Foods back in 2017.
Evidently, Amazon has not disclosed a date of closure for the MGM takeover, which would be subject to regulatory approvals and other closing conditions. However, some reports expect the deal to receive approval by the end of the year.
The purchase price is reportedly inclusive of the assumption of the Hollywood studio’s debt. After the completion of the acquisition, MGM would seemingly carry on operations as a label under the Amazon name.
MGM, which was founded in 1924, would apparently complement Amazon Studios. MGM chairman Kevin Ulrich evidently worked with Hopkins on the agreement.
Ulrich said that the opportunity to align the company’s storied history with Amazon is an “inspiring combination”, as per reports.
Film distributor Amazon Studios stated that it has primarily been focused on producing TV shows. However, Amazon aims to help preserve MGM’s heritage and catalog of movies and offer customers with better access to the existing works, the company reported.