Amazon acquires MGM for $8.45 billion

Amazon announced on 25 May that it will acquire MGM Studios for $8.45 billion. This is Amazon’s boldest move in taking its stance in the entertainment industry and its second largest acquisition so far.

The acquisition is aimed at bolstering Amazon Studios with MGM’s extensive catalogue and intellectual property of 4,000 films and 17,000 TV shows. This catalogue includes classics, such as 12 Angry Men and The Silence of The Lambs, as well as critically acclaimed works, such as Handmaid’s Tale.

Amazon CEO Jeff Bezos expressed his plan to work with both the talented teams of Amazon Studios and MGM Studios. “We can reimagine and develop that IP for the 21st century,” he said during a call with shareholders. MGM Studios Chairman Kevin Ulrich said, “The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”

This major move made by Amazon confirmed its commitment in stepping up its streaming game and compete in the field. Just like Netflix and Disney, Amazon shows ruthlessness in obtaining as many content as possible to win over subscribers.