Amazon, the e-commerce giant, is planning to acquire Metro Goldwyn Mayer (MGM), the TV and movie studio behind Shark Tank, James Bond, and Legally Blonde, with the hopes of filling its service of video streaming with more stuff to watch. Amazon will pay $8.45 billion for MGM, making it the 2nd-largest acquisition of the firm after acquiring grocer Whole Foods for almost $14 billion in 2017.
Today, it has been officially announced that Amazon and @mgmstudios have entered into a definite merger agreement allowing Amazon to officially acquire MGM for a purchase price of $8.45 billion. #AmazonMGM pic.twitter.com/ZBBWsZvMD4
— CinePhellas (@Cinephellas) May 27, 2021
The agreement is the latest in the media industry that aimed to boost streaming services to compete against Discovery, Disney+. AT&T and Netflix announced last week that they would combine media agencies, establishing a powerhouse that includes Food Network, CNN, HBO, and HGTV. Amazon does not say how many users its Prime Video streaming service, but over two hundred users have access to it because they pay for Prime membership, which gives them speedy shipping and other perks.
On Wednesday, Amazon said that it would use the vast library of MGM, which includes famous characters like Pink Panther, Rocky, and RoboCop, to create shows and new movies. During Amazon’s shareholder meeting on Wednesday, Jeff Bezos, the founder of Amazon, said that it is going to be a lot of fun work. People who are lovers of stories are going to be the big beneficiaries.
Roaring Lion Logo
An e-commerce analyst at Forrester Research Inc., Sucharita Kodali, said streaming corporations need shows people can not watch elsewhere if they want to be competitive and stand out. Furthermore, the price tag is just a small fraction of the valuation of Amazon, which is almost $2 trillion. MGM is known for its roaring lion logo and is one of the oldest studios in Hollywood that founded in 1924 when films were still silent.
Unfortunately, the shine of MGM faded significantly during the last some years. In the mid-1980s, it sold much of its pre-1948 catalog, including “Gone with the Wind” and “The Wizard of Oz,” which later Warner Bros acquired. And Sony bought its extensive California. For much of the last decade, Metro Goldwyn Mayer manipulated bankruptcy and a revolving door of owners while its new releases decreased.
MGM splits ownership of James Bond with Michael G. Wilson and Barbara Broccoli, who have complete control over the franchise. Furthermore, the release of the latest James Bond entry, No Time to Die, has been on hold through the coronavirus pandemic, with a fall release now planned. Its other forthcoming movies include Ridley Scott’s House of Gucci, with Adam Driver and Lady Gaga; Soggy Bottom, starring Bradley Cooper; and the Aretha Franklin’s documentary Respect with Jennifer Hudson.
In addition, its library includes over four thousand movies and seventeen thousand Television shows, such as,
- Thelma & Lousie
- Silence of the Lambs
- Shark Tank
- The real Housewives of Beverly Hills
.@AmazonStudios acquires the leading enter company @mgmstudios! The merger will allow customers to access the vast catalog of more than 4000 #MGM movies and 17k+ TV shows including James Bond, Legally Blonde, Creed, and Fargo among other exclusively on Amazon Prime Video!
— Puja Talwar (@talwar_puja) May 26, 2021
Oscars and Emmys
Amazon already has its own studios, and two of its shows, “Fleabag” and “The Marvelous Mrs. Maisel,” won the best comedy series Emmy awards. It also won many Oscars, including most recently for Sound of Metal won award. At the same time, several films failed to gain the attention of audiences at the box office.
Amazon previously planned to spend on splashy shows and sports. Next year, it will stream “Thursday Night Football.” At present, it is producing a “Lord of the Rings” show, which supposedly cost $450 million for only its initial season.
Regulators Globally Scrutinizing Amazon’s Business Practices
Amazon Inc. was unable to say when it expects the finalization of the deal. However, after acquiring the deal, the company will become even more significant as it is already one of the most valuable and powerful world companies. Regulators across the world are watching the business practices of Amazon, specifically the way the company looks at data from businesses that sell goods on its website and uses it to make its own Amazon-branded products.
The House Judiciary Committee’s October report called for a likely breakup of Amazon and others, making it difficult for them to acquire other businesses and implementing new rules to secure competition. Moreover, the District of Columbia hit Amazon with an antitrust lawsuit and accused it of creating policies that make its sellers powerless to offer lowers prices for their products outside Amazon.com, pushing up prices for customers. On Wednesday, some representatives urged regulators to watch the MGM-Amazon deal closely.