Tuesday, June 15We Break the News

Amazon acquires Hollywood’s iconic studio MGM for $ 8.45 billion

Spread the love

Los Angeles, U.S.A

US e-commerce giant Amazon announces Wednesday to acquire one of its most iconic Hollywood studios, Metro-Goldwyn-Mayer (MGM), for US $ 8.45 billion Did.

“MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has focused primarily on TV programming,” providing customers with access to these existing productions. ..

Founded in 1924, MGM owns one of the world’s deepest libraries of premium film and television content. Home to over 4,000 films including James Bond, 12 Angry Men, Basic Instinct, Creed, Rocky, The Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair. .. , And many other icons, and 17,000 television shows, including Fargo, The Handmaid’s Tale, and Vikings.

MGM’s films and television shows have won more than 180 Academy Awards and more than 100 Emmy Awards, and Prime Video and Amazon Studios Senior Vice President Mike Hopkins said in a press release.

“The real monetary value behind this deal is a treasure trove of deep catalog IP that we plan to rethink and develop with MGM’s talented team. It’s very exciting and high. It offers numerous opportunities for quality storytelling.

Amazon CEO Jeff Bezos said at the company’s annual shareholders’ meeting Wednesday that the company had purchased MGM for “a vast and deep catalog of highly beloved intellectual property.” The Hollywood Reporter, one of Hollywood’s largest trade magazines, reported.

“And with MGM’s talent and Amazon Studios’ talent, we can rethink and develop that IP for the 21st century,” Bezos reportedly said by the press.

“It’s an honor to participate in the incredible transformation of Metro-Goldwyn Mayer. To come here, we needed very talented people with a true belief in one vision. Board of Directors On behalf of me, I would like to thank the MGM team for helping us reach this historic day, “said Kevin Ulrich, Chairman of the Board of Directors of MGM.

“The MGM lion, which has long evoked the golden age of Hollywood, continues its renowned history, and the ideas born from the founding of United Artists are driven by talent and talent to live the way the founder originally intended. We are very proud of that, “their vision,” added Ulrich, adding that the opportunity to align MGM’s history with Amazon is an exciting combination.

Mega Deal is Amazon’s largest acquisition since it acquired Whole Foods for $ 13.7 billion in 2017. The $ 8.45 billion price was reportedly about 40% higher than other potential buyers, but the merger made Amazon competitive with other streaming service giants such as Netflix and Disney +. Greatly enhanced.

Amazon’s Prime program, which offers Amazon free shipping, video streaming, music, and more, has more than 200 million paying subscribers, including 147 million in the United States. Delivered as part of Amazon’s Prime subscription, Amazon Prime Video is one of the most widely used streaming services in the country.

The deal, awaiting regulatory approval, takes place during an antitrust investigation into e-commerce giants. CNBC reported that Amazon “is facing ongoing investigations by multiple federal agencies, state attorney generals, and European antitrust oversight agencies.”

In the latest antitrust proceedings against Amazon, DC Attorney General Karl Racine said on Tuesday that the company “used its dominant position in the online retail market to win at all costs.” Maximized profits at the expense of third-party sellers and consumers. ” “In a statement.

The deal is $ 43 billion for AT & T to integrate WarnerMedia’s premium entertainment, sports and news assets with Discovery’s leading nonfiction and international entertainment and sports businesses to create the best independent global entertainment company. It will take place a few days after announcing the transaction.

The Amazon-MGM deal “shows the latest major integrations that rock the entertainment industry,” said The Hollywood Reporter, who said Amazon “netflix (207 million registrants) over global hegemony among top streamers. ) And Disney + (103 million registrants). ” “”

Variety, another top Hollywood trade magazine, also said, following AT & T’s decision to spin off WarnerMedia and combine it with Discovery, “the deals predicted by many entertainment analysts will trigger new rounds of mergers and acquisitions. Probably. ” Media companies and streaming players scramble to lock the most compelling content available. “

“For Amazon, snapping up MGM is a way to supercharge Prime Video services with a number of well-known entertainment titles,” said Variety.

CNBC said the deal was the first time a major tech company had acquired a legacy media company. The New York Times called the deal “the ultimate symbol of the end and beginning of the Hollywood era.” “The end of MGM as an independent company will lead to a major restructuring of the media business as a large company trying to compete by becoming larger,” said a major newspaper.

Barron’s, a financial institution issued by Dow Jones, said the deal wouldn’t change much for the average streaming viewer in the short term. “But in the long run, the deal will affect many players in the film and television business, and as the largest players stock up on controllable content, new pressure on streaming services that don’t have their own production department May be applied. ”

Hits: 66