Amazon Bought MGM Studios For $ 8.5 Billion
Amazon has paid $ 8.5 billion for MGM Studios, co-owners James Bond and other iconic franchises.
The Hollywood brick-and-mortar studio went on sale late last year, offering a price of just over $ 5 billion. After 97 years, Metro-Goldwyn-Mayer feels the weight of mandatory content anywhere, anytime and is struggling to compete with the big streamers.
It has a huge release up its sleeve for the end of this year in the form of No Time To Die, Daniel Craig's latest release as Bond. Amid constant delays and growing marketing budgets, the studio would have explored the sale of the title to Apple and Netflix, but neither side could agree on a price. Amazon has now purchased a new Infinity stone in its marketplace.
As reported by Variety, Amazon bought MGM for $ 8.45 billion. It is the company's largest acquisition since 2017 when it bought Whole Foods for $ 13.7 billion.
After the sale, Amazon will keep the history of MGM entertainment "and give customers greater access to these existing works," the companies said.
What does the business mean for Amazon? Well, he will hold the keys to both the James Bond and Rocky franchises, as well as Hobbit, Legally Blonde, Pink Panther and Stargate. It will also expand its multitude of TV shows, such as The Handmaid's Tale, Fargo, Shark Tank, Survivor, The Real Housewives and The Voice.
Overall, MGM has 4,000 movie titles, including Silence of the Lambs , Rain Man, RoboCop and The Terminator, as well as 17,000 hours of television. Given that Disney is constantly conquering the world with its monopoly and Netflix status as the ultimate household name, not to mention Apple TV + and its original content, Amazon and MGM could be a powerful combo in the future. .
Rumours surfaced last year about MGM testing the waters to see if a streaming platform would be interested in buying the distribution rights for No Time To Die, probably a partial, partially theatrical entertainment deal similar to Apple and Paramount Pictures. However, at $ 600 million, no one bites.
The studio is said to have long-term debt of $ 2 billion, aggravated only by the continuous delays of No Time To Die. However, even the debt is still valued at more than $ 5 billion, with stock prices rising in recent days due to talks on a deal.
Meanwhile, production continues on the Amazon Lord of the Rings series, easily his biggest and highest project. With a budget of $ 465 million, executives said they would need a "huge audience" to make it useful. With the MGM library, it will have no problem attracting more subscribers.