Did Amazon Buy MGM?
Amazon has agreed to buy MGM for the premium price of $8.45 billion. The 97-year-old film and television studio will now be handing the e-commerce conglomerate an extensive collection of TV shows and movies, including some of the most well-known film franchises, “James Bond” and “Rocky.”
The deal is almost as big as one of their most memorable purchases, acquiring Whole Foods in 2017 for a sizable $13.7 billion. The studio had been on the market for months and the huge price tag came as a surprise to many other prospective buyers, such as Apple and Comcast. Now that the studio has been acquired by Amazon, there is expected to be plenty of competition from the rapidly growing video-streaming industry, including Netflix, Hulu, Disney+, and many other companies. Amazon’s purchase of MGM gives them the opportunity to increase their premium content exponentially. Amazon Prime Video, which has over 150 million subscribers, is just behind the number one streaming service, Netflix, with over 200 million subscribers. Now with access to this extensive library of content, Amazon will be better positioned to compete with the likes of Netflix.
With MGM bringing almost a century’s worth of high-profile franchises, Amazon, one of the most powerful companies in the world, will be even bigger. While MGM comes with one of Hollywood’s most valuable franchises, James Bond, Amazon will only own half of Bond. The other half is owned by Barbara Broccoli and her brother, Michael G. Wilson. The two siblings have control over a number of factors surrounding the franchise, including creative control, the decision of when to make another Bond film, who should play the title character, and whether spinoffs or remakes can be made.
The 25th segment of the Bond series, “No Time to Die” is expected to be released October 8, after it was delayed due to the pandemic. After the release, the future of the Bond franchise is uncertain. But according to Barbara Broccoli and Michael G. Wilson, they are “committed to making James Bond movies for the worldwide theatrical audience.”
Why is Amazon Buying MGM?
One thing is for sure, Amazon has the ability to pay just about any price and so they did. With a staggering market value of $1.76 trillion, it is no secret that Jeff Bezos is not afraid to make his mark in different markets. With that being said, Amazon paid a startling premium because of its profitable Prime membership program. In the press release reporting the deal, Amazon explained that the “vast catalog” of having “more than 4,000 films and 17,000 TV shows” is the reason behind the big purchase, which will surely add value to Amazon Prime’s video streaming service.
In addition to the decades-long list of James Bond films, there is a wide range of other classic films that Amazon will have, including “Thelma & Louise,” “Dances With the Wolves,” “Silence of the Lambs,” “Rocky,” and many more. Beyond that, Amazon will be acquiring a plethora of other films and TV shows; however, it is not completely transparent which content have rights that will be split up besides the Bond franchise, as Amazon will only own half of it. As for television, Amazon will also be getting “The Handmaid’s Tale”, “Vikings,” “Fargo,” and much more.
While it’s not the first time that Amazon has tried going Hollywood, their own studio has had mixed results. Two of Amazon’s shows, “The Marvelous Mrs. Maisel” and “Fleabag” did do very well and won best comedy series Emmys. However, many of Amazon’s other films did not top the box office. The purchase of MGM will certainly bolster the company, making Amazon even more successful and valuable than it already is.
What is MGM On Amazon?
Metro-Goldwyn-Mayer Studios Inc. is one of the oldest surviving film studios, which was originally founded in 1924. For nearly 100 years, MGM’s iconic logo–featuring a roaring lion–has been known worldwide as an instantly recognizable symbol of Hollywood and the movie industry. Over the course of its storied history, MGM released legendary films like “The Wizard of Oz,” “Gone With the Wind,” and “Singing in the Rain.” In the 1950s, the studio entered the then-new world of television, and in the decades that followed established itself as a premier producer of scores of TV’s biggest hits.
About Vedette Finance
Vedette Finance is a film development and finance company, founded by Tarek Anthony Jabre. Vedette Finance’ objective is to develop its premium value slate, creatively, and structure the financing, to maintain a steady output of high-quality film releasing. Tarek Anthony Jabre is heading numerous film projects, all at different stages of production. His fundamental aim is to maintain a consistent delivery of high-end product, quality, and financial return; by syndicating and partnering with those of the highest expertise and experience in the entertainment industry. Visit our contact page, for more information on Vedette Finance.