The rumours are true Amazon has bought film studio MGM for a whopping $8.45 billion.
Amazon made the announcement today about the monumental sale stating:
“Amazon will help preserve MGM’s heritage and catalog of films, and provide customers with greater access to these existing works. Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling.”
Following the announcement, Kevin Ulrich, chairman of MGM’s board of directors, said:
“I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”
MGM or Metro-Goldwyn-Mayer is one the most well-known media companies in the world, based in the United States they specialize in the production and distribution of feature films and television shows.
MGM’s corporate headquarters are in Beverly Hills, California, and it is one of the world’s oldest film studios. The catalogue of films that have come from MGM covers more than ten decades of films that have collectively won more than 180 Academy Awards among them.
Some of the major Film series that have come out of MGM over the years include James Bond, The Pink Panther, Rocky, Poltergeist, Legally Blonde, Barbershop, The magnificent Seven, Thelma & Louise, Basic Instinct, Silence of the Lambs among countless other blockbusters.
MGM reportedly began looking for a buyer in December of last year. Apple was in the running for $6 billion but passed on the acquisition giving Amazon the green light to begin negotiations.
The question on everyone’s mind is why would Amazon want to own MGM? Two major advantages of the high profile acquisition are Epix and a deep catalog of films.
For those who are unfamiliar with EPIX, it is an American premium cable and satellite television network owned by Epix Entertainment LLC, an MGM subsidiary. EPIX is available to 85 million cable customers which is nothing to be sniffed at.
MGM is currently owned by several private equity firms these include: Highland Capital Management, Anchorage Capital Group, and Solus Alternative Asset Management. . This purchase comes as a number of companies try to expand their content libraries in order to compete with Disney and Netflix.
According to Amazon’s annual report, it spent about $11 billion on TV, film, and music last year, up 41% from the previous year. Jeff Blackburn, a former senior executive, has recently returned to lead the global media and entertainment company.
Amazon appears to be committed to expanding its audience and reach, and what better way to do so than by acquiring one of the world’s oldest and largest film studios.