AMAZON BUYING MGM STUDIOS FOR $8.45B
Amazon is acquiring storied Hollywood studio MGM in a deal worth $8.45 billion in a bid to bolster its streaming catalog, Saqib Shah reported for Engadget.
The takeover hands it the rights to an eye-watering pool of crowd-pleasers including James Bond, Rocky, and Robocop. MGM also owns The Hobbit franchise, which should sit nicely alongside Amazon's upcoming Lord of the Rings series for Prime Video.
On the TV side, the studio's output includes recent hits such as The Handmaid's Tale and Fargo, along with all things under its Epix TV network.
The deal — the second-largest in Amazon's history after its $13.7 billion Whole Foods acquisition — is part of a new wave of media consolidation ushered in by the so-called streaming wars. Already, we've seen Disney consume 21st Century Fox for $71 billion, assimilating its library into Disney+ and Hulu. It came in the wake of the newly-announced merger of HBO Max parent WarnerMedia with Discovery.
Together, the two companies spend a whopping $20 billion per year on content, slightly more than the $17 billion Netflix splurges on originals.
But, while legacy media companies have pulled the trigger on big deals as a means of survival, Big Tech has been relatively silent on the acquisition front. Rumors indicating that MGM was interested in a sale had been circulating for years. The studio was previously reported to be in talks with Apple for a takeover that would have valued it at $6 billion.
WEEKLY FEATURE : TRUEMONEY PHILIPPINES BUCKS THE COVID-19 CHALLENGE