Amazon confirms acquisition of MGM for $8.45B: here are the details
- Amazon confirmed in a press release it will acquire MGM for $8.45 billion.
- Media reports suggested confirmation of a merger would come by Friday.
- Amazon said it acquired a 'treasure trove of IP'.
After days of media speculation over a pending multi-billion dollar deal, Amazon.com, Inc. (NASDAQ: AMZN) confirmed in a Wednesday press release an agreement to acquire MGM Studios for $8.45 billion (£5.97 billion).
‘Treasure trove of IP’
Amazon and MGM confirmed a definitive merger agreement in which Amazon will acquire MGM for $8.45 billion. The deal consists of MGM’s catalog of more than 4,000 films and brings nearly 100 years of filmmaking history to Amazon.
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To date, Amazon Studios’ media ambitions focused mostly on TV show programming such as the political action thriller series Tom Clancy’s Jack Ryan. As such, the inclusion of thousands of movies to the Amazon library will complement its media offerings. Amazon said it will help preserve MGM’s heritage and catalog of films while promising customers greater access to MGM’s library.
Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios, commented in the press release:
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.
The acquisition remains subject to regulatory approvals and other customary closing conditions. A projected timeline was not offered and it is not immediately clear how Amazon will finance the transaction.
MGM: an ‘inspiring combination’
Some of the most notable and iconic film franchises to find a new home in Amazon include James Bond and Rocky, Robocop, Silence of the Lambs, among others.
In total, MGM’s properties won 180 Academy Awards and 100 Emmys.
Kevin Ulrich, Chairman of the Board of Directors of MGM, also commented in the press release that MGM will remain committed to its long history of storytelling that is consistent with its original founders. Ulrich added:
The opportunity to align MGM’s storied history with Amazon is an inspiring combination.