Amazon Will Buy MGM Studios For $6.5B

Amazon announced that it has agreed to acquire Hollywood studio MGM, a deal the e-commerce giant is betting can jump-start its Prime Video streaming platform and position it to compete with industry heavyweights including Netflix and Walt Disney, reported The Wall Street Journal.

The purchase, which was unveiled Wednesday morning, May 26, has an equity value of US$6.5 billion, people familiar with the matter said. Including debt, the value of the deal is US$8.45 billion, Amazon stated. It is the second-largest acquisition in the company’s history behind its US$13.7 billion purchase of Whole Foods in 2017.

In MGM, Amazon will gain a library of over 4,000 films, including iconic franchises such as “James Bond” and “Rocky,” and classics such as “The Silence of the Lambs,” “Raging Bull,” and “12 Angry Men.” The TV catalog includes critically acclaimed shows such as “The Handmaid’s Tale,” “Fargo,” and “Vikings.”

Amazon’s deal for MGM is the latest in a series of mergers that are shaking the entertainment industry as media and tech companies fight for supremacy in the streaming age.