27 May 2021 – Seattle
Amazon has acquired Metro Goldwyn Mayer (MGM’s) at an $8.45 billion deal. With this deal, Amazon has MGM’s content of over 4000 films and 17000 hours of television shows dating back to almost a century.
Amazon has been investing aggressively in its own Amazon studios to create content for Amazon Prime Video. Amazon believes acquiring MGM will help them scale up to compete with the likes of Disney+ and Netflix. Mike Hopkins who heads Amazon Studios and Prime Video said MGM’s talented team is the real financial value. Mike believes they can produce high-quality storytelling and content working together with MGM. In the annual shareholder meeting on Wednesday, CEO Jeff Bezos said that Amazon is “really excited about MGM”.
More than 180 Academy Awards and 100 Emmys have been collectively won by MGM’s films and shows. MGM is notable not only for the James Bond series but also for classic films like 12 Angry Men to modern TV shows like Vikings. The private equity firms that include Anchorage Capital Group, Highland Capital Management, and Solus Alternative Asset Management currently own MGM .
Amazon has been increasing its investment in content creation and spent $11 billion last year up from $7.8 billion in 2019. On the other hand, Netflix spent about $17 billion in 2020. Amazon has been competing with Netflix and Disney+ for global streaming services.
What do you think about this deal with Amazon? Who do you think will rule the streaming services in the future? Let us know in the comments below.