Amazon set to acquire movie blockbuster MGM at $8.45 billion

The giant retailer will acquire MGM at $8.45 billion to preserve its heritage of films. Amazon is investing heavily to reinforce its position in the world of entertainment.

Some of MGM’s movies are James Bond, Raging Bull, The Magnificent Seven, and Rocky. It also owns popular TV series like “The Handmaid’s Tale” in its fourth season on Hulu.

It is not yet clear when this mega-deal will be closed as it “is subject to regulatory approvals as well as other customary closing conditions.”

In a statement, Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said, “It’s very exciting and provides so many opportunities for high-quality storytelling.”

AT&T announced an earth-shaking deal of combining its media business earlier this month, such as app HBO Max and CNN, with Discovery, the home to HGTV and Food Network. Such deals are stirring completion in the streaming industry.

On top of Prime Video services such as “The Marvelous Mrs. Maisel” and “The Boys,” Amazon wants to add MGM’s classic movies to Prime Video’s subscribers.

Further adding more than 17,000 original TV shows and 4,000 movies on Prime Video will help the tech giant compete with Netflix as Americans’ appetite for streaming media grew during the Covid-19 era as the majority of people remained at home.

Hopkins said, “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.”

As it’s one of the world’s wealthiest companies, Amazon will get more content in addition to renowned Hollywood studio and stylish super spy that helps it compete with Disney and Netflix.