After several weeks of rumors, it is now confirmed. The giant Amazon announced Wednesday, January 26 the takeover of the famous Hollywood studio Metro Goldwyn Mayer (MGM), created in 1924, and famous for its roaring lion. The merger deal is worth $ 8.45 billion. Last December, the MGM studio was valued at 5.5 billion.
This buyout is the second largest operated by the group, after that of the Whole Foods chain of stores in 2017, for 13.7 billion dollars. This time, Amazon is enriching its video-on-demand branch, Prime Video. This recovers the rights to the MGM catalog, made up of 4,000 films and 17,000 television shows. Among the best known: the lucrative franchise James bond, Singin’in the Rain, Rocky, or The Scarlet Handmaid.
Attract new subscribers
What to attract new subscribers. “The true financial value of this deal is the full catalog intellectual property treasure that we plan to reinvent and develop with the talented team at MGM.”, announced Mike Hopkins, senior vice president of Prime Video and Amazon Studios.
“MGM has nearly a century of cinematic history and complements the work of Amazon Studios, which has primarily focused on the production of television show programs.”, he continued.
This new takeover completes Amazon’s series of acquisitions, made to complete its video offering. In March, it bought the broadcast rights to the American Football League (NFL) for $ 1.2 billion, according to the Wall Street Journal.
Suffered from the crisis
Amazon Prime Video had benefited from the closure of cinemas and the rise of video-on-demand subscriptions during the health crisis. At the same time, like many American film studios, MGM had particularly suffered from the crisis.
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James Bond’s latest opus, To die can wait, had thus seen its release postponed several times and should finally be screened in theaters in the fall in the United States.