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06/01/2021

Amazon to Take Over MGM in $8.5B Deal

E-commerce giant Amazon is acquiring movie studio Metro Goldwyn Mayer in a deal valued at $8.45 billion.
MGM logo

MGM has a catalog of more than 4,000 movies, including blockbuster hits such as the James Bond and Rocky films, 12 Angry Men, Basic Instinct, Creed, Legally Blonde, Poltergeist, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider and more. Additionally, MGM owns more than 17,000 TV shows, such as Emmy winners Fargo, The Handmaid’s Tale, and Vikings.

“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling,” Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said in a statement.

Executive Summary

The acquisition could catapult Amazon’s media business, and the deal is Amazon’s most ambitious in the entertainment industry. Amazon began adding entertainment to its roster of services and products in 2010 with its subsidiary Amazon Studios and has been increasingly focused on creating original content.

 

MGM has nearly 100 years of filmmaking under its belt, and the studio “complements” Amazon Studios, according to Amazon. Amazon will help preserve the films and TV shows under MGM and give customers greater access to them. 

Exec summary

“It has been an honor to have been a part of the incredible transformation of Metro Goldwyn Mayer. To get here took immensely talented people with a true belief in one vision. On behalf of the Board, I would like to thank the MGM team who have helped us arrive at this historic day,” said Kevin Ulrich, chairman of the board of directors of MGM. “I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”