The online retailer is acquiring MGM, the film and television studio behind James Bond, “Legally Blonde,” and “Shark Tank,” in the goal of expanding its video streaming business.
Amazon is paying $8.45 billion for MGM, making it the company’s second-largest purchase after acquiring supermarket Whole Foods in 2017 for roughly $14 billion.
The agreement is the latest in the media business to enhance streaming services in order to compete with Netflix and Disney+. On May 17, AT&T and Discovery announced a merger of media firms, becoming a powerhouse that includes HGTV, CNN, Food Network, and HBO.
Buying MGM would give Amazon access to more films, shows and famous characters, including Rocky, RoboCop and Pink Panther. Amazon will also get a cable channel: Epix, which MGM owns.
Known for its roaring lion logo, MGM is one of the oldest Hollywood studios, founded in 1924 when films were silent. It has a long list of classics in its library, including “Singin’ in the Rain.” More recent productions include reality TV staples “Shark Tank” and “The Real Housewives of Beverly Hills,” as well as the upcoming James Bond movie “No Time to Die” and an Aretha Franklin biopic called “Respect.”
Amazon already has its own studio but has had mixed results. Two of its shows, “The Marvelous Mrs. Maisel” and “Fleabag,” won best comedy series Emmys. But many of its films have failed to click with audiences at the box office. Recently, Amazon has been spending on sports and splashy shows. It will stream “Thursday Night Football” next year and is producing a “Lord of the Rings” show, which reportedly cost $450 million for its first season alone.
