Founded in 1924, MGM completes Amazon Studio, which companies say focuses primarily on TV programming. The companies say Amazon will help “preserve MGM’s heritage and list of images” and give customers more access to these existing works.
According to Amazon, snapping MGM with more than 4,000 movies and 17,000 TV shows is a way to charge more for its prime video service with well-known entertainment features. In addition, Amazon expects to be able to tap 007 owners for Metro-Goldwin-Mayer properties such as Pink Panther, Rocky and yes, new sources.
“The real financial value behind this deal is treasure [intellectual property] In an in-depth list we plan to review with MGM’s talented team, ”said Senior VP of Prime Video and Amazon Studios. Mike Hopkins said in announcing the deal. “It’s very exciting and offers many opportunities for high quality storytelling.”
Hopkins noted that MGM products have collectively won more than 180 Oscars and 100mm. The studio has about 800 employees worldwide.
The MGM deal is Amazon’s second-largest acquisition, behind $ 13.7 billion in full food purchases in 2017. Amazon did not say when it expects MGM to close the acquisition, which is subject to regulatory approvals and other customary completion conditions; However, locals hope the deal will be ratified by the end of 2021. The purchase price also includes the assumption of the MGM loan. MGM will continue to operate as a label under the Amazon brand.
Kevin Ulrich, president of MGM, who worked with Hopkins to learn the details of the deal, said in a statement: “I am very proud that MGM Lion, which has long sparked Hollywood’s golden age, will continue its floor history. The idea, born out of the creation of United Artists, lives the way the founders originally wanted, driven by talent and their vision. The opportunity to link MGM’s layered history with Amazon is an exciting mix. ”
Among the film titles Hopkins called for announcing the MGM deal were “12 Angry Men,” “Basic Intuition,” “Creed” and “Rocky,” “Legally Blonde,” “Moonstroke,” “Raging Bull,” “RoboCop,” ” Lamb’s Mile, “” Stargate, “” Thelma & Louise, “” Tomb Rider, “” Fantastic Seven, “” Pink Panther, “” The Thomas Crown Affair “- and, of course, the James Bond series. On the TV front, the Amazon executive quoted “Barco,” “The Handmaid’s Tale,” and “The Vikings.”
The deal comes in the wake of AT&T’s decision to disable WarnerMedia and merge with Discovery, a deal predicted by many entertainment analysts that could spark a new round of mergers and acquisitions as media companies and streaming players rush to lock up the most important content available.
However, in recent months the companies that kicked the tires when MGM quietly came to the store have expressed shock over the price at which Amazon Studio is willing to pay. They believed the studio was worth more than $ 5 billion to $ 6 billion with the assumption of some debt. This is one reason why the rights to the bond are being shared with MGM Ion Productions. Half-siblings Barbara Broccoli and Michael G. The company, run by Wilson, has extraordinary control over the spy chain – recognizing everything from marketing to acting to distribution. This means that Amazon will fight to get their identity in any move to launch the next Bond movie on its streaming service Amazon Prime.
Under filmmaker Michael de Luca, MGM has lined up a number of promising projects, including Ridley Scott’s “House of Gucci”, Paul Thomas Anderson’s “Soki Bottom” and “Project Hail Mary”, an adaptation of Andy Veer’s novel by Ryan Gosling.
In recent years, Amazon’s studio division has moved its strategy toward commercial fees such as “Coming 2 America” and “Regretless” and away from award-driven “Manchester by the Sea” and “Cold War”. It is unclear whether De Luca will go to Amazon, but Hollywood locals believe he will play some sort of role in the streamer, perhaps even directing its film division.
At the end of the first quarter of 2021, Amazon had $ 73.3 billion in cash on its balance sheet, $ 31.9 billion in cash equivalents and marketable securities and long-term debt. The SEC is required to disclose the details of such transactions in the filing of the regulation when companies enter into “material firm agreements”. As of 9:30 a.m. Wednesday, Amazon had not filed any disclosures related to the MGM deal, which indicated that Amazon did not consider the $ 8.45 billion purchase price to be a commodity for its business.
The Amazon deal to buy MGM for nearly $ 9 billion comes a day later The Attorney General of Washington D.C. filed a no-confidence motion ECommerce vs. Colonel – accused Amazon of engaging in reactionary practices, including pricing, resulting in higher prices for consumers and “inhibiting innovation and choice in the entire online retail market.”