Amazon will soon announce the acquisition of the Hollywood studio MGM. This acquisition will mark the start of the e-commerce giant’s Hollywood career. On Monday, the Wall Street Journal reported that the deal will cost nearly $ 9 billion according to sources.
According to the verdict, an acquisition of MGM Studios It will ‘bolster Amazon’s streaming portfolio with solid content,’ most notably the James Bond franchise, which is the fifth most valuable movie franchise of all time and raises more than $ 7 billion.
MGM had been looking for a buyer for some time. Earlier, Apple and Comcast had decided that the value of the study should be approximately $ 6 billion. The MGM acquisition would be Amazon’s second-largest acquisition after it agreed to buy Whole Foods in 2017 for $ 13.7 billion.
Reasons behind the acquisition
MGM has an extensive catalog of more than 4,000 films and 17,000 television episodes. He is also regarded as the number one unscripted television producer. Additionally, the studio’s extensive experience in film and television production will also aid Amazon Studios’ future operations.
The deal would bring a vast library of movies and shows to Amazon, which operates on streaming service Prime Video. MGM’s catalog includes the James Bond, Pink Panther, RoboCop and Rocky franchises, as well as films such as “The Silence of the Lambs.”
Another reason Amazon acquired MGM is that in 2020 Amazon spent $ 11 billion on creating content alone. Therefore, the acquisition would suggest a significant increase in content that MGM already has for $ 9 billion.
Apart from this, the updated content library will be able to make a difference in the number of subscribers of your rivals. Amazon’s biggest rival, Netflix has more than 208 million users, while Prime Video it has about 175 million users. Having the benefit of newly added content will give Amazon the edge in the streaming space.