In a move that could shake up the streaming industry, Amazon has announced that it has purchased MGM for $8.45 billion. The acquisition of MGM, the iconic Hollywood film studio, will give Amazon access to a vast library of movies and TV shows to bolster its streaming service, Prime Video.
The purchase of MGM is Amazon's second-largest acquisition after it acquired Whole Foods for $13.7 billion in 2017. The deal will give Amazon access to over 4,000 movies and 17,000 TV shows, including iconic franchises such as James Bond, Rocky, and The Handmaid's Tale.
Amazon has been investing heavily in its streaming service, Prime Video, to compete with other streaming giants such as Netflix and Disney+. The purchase of MGM is expected to provide a significant boost to Amazon's content offerings and help it to attract and retain more subscribers.
The acquisition of MGM also highlights the growing trend of media consolidation, as streaming services seek to acquire content libraries to differentiate themselves from their competitors. Amazon's acquisition of MGM follows a similar move by AT&T, which recently announced the spin-off of WarnerMedia and the merger with Discovery to create a new streaming giant.
The purchase of MGM will also give Amazon greater control over the production and distribution of its content. MGM has a long history of producing and distributing films and TV shows, and Amazon will now have access to its intellectual property, production capabilities, and experienced staff.
Amazon's CEO, Jeff Bezos, stated that the acquisition of MGM will provide "the very best in storytelling and entertainment" to Prime Video customers and that he is "excited to work with the talented team at MGM to bring great stories to audiences around the world."
The acquisition of MGM is still subject to regulatory approval, and it is expected to be completed in the second half of 2021. The purchase price of $8.45 billion is a significant premium to the $5.8 billion that MGM was valued at in 2019.
In conclusion, Amazon's purchase of MGM is a significant move in the streaming industry, which is becoming increasingly competitive as more players enter the market. The acquisition of MGM's vast library of content is expected to help Amazon to compete with other streaming services and attract more subscribers to Prime Video. The purchase also highlights the trend of media consolidation and the growing importance of content libraries in the streaming industry.
0 Comments