Amazon announces the purchase of the studio Behind the James Bond Franchise, MGM for $8.45 Billion
Amazon and MGM earlier today announced that an agreement, that will see Amazon acquire the studio and rights to all its works, has been reached between the two companies.
Founded in 1924, MGM has gone from being just a movie-making studio to a giant entertainment company with a rich catalog of films under its name. Alongside the announcement of the merger, the two companies added that all the movies and TV shows owned by MGM would be even more easily accessible now that the two companies are together.
While we cannot say which company is benefitting more from the merger, there is one thing we do know for sure, Amazon Prime Video subscriptions are about to be worth every single dollar subscribers pay for it. What with the addition of over 4,000 movies and 17,000 TV shows owned by MGM, it is a good time to be a Prime Video subscriber! Furthermore, Amazon Studios would be looking to revive popular old franchises from the studio such as the incredible 007 series among other classic titles.
Speaking while announcing the deal officially to the public, Senior VP of Amazon Studios and Prime Video, Mike Hopkins, said that “The real financial value behind this deal is the treasure trove of (intellectual property) in the deep catalog that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling.” During the announcement, Hopkins also briefly mentioned that MGM studios have over 800 global employees, all of whom will be joining the studio to Amazon.
This is not the first time Amazon would be pulling off incredibly expensive acquisitions but the $8.45 Billion deal sure puts it second on the list of Amazon’s expensive company acquisitions.
Although there is no confirmed date on when the merger deal would be approved by a regulatory body governing the whole industry, Variety quoted insiders believe the deal should be done by the end of the year (2021). One of the interesting terms and conditions of the deal is that Amazon will take responsibility for MGM’s debt while the studio will be working as a branch under the Amazon Brand.
In a statement released by MGM’s executive chairman, Kevin Ulrich, he expressed his happiness about the deal saying “I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”
While it is yet to be seen as to whether the next title in the Bond franchise would debut on the Amazon Prime streaming service, there is no denying that the merger can open a whole world of possibilities not only for both companies but also for fans of the various classics mentioned by Hopkins during the deal announcement. Some of the popular titles include Creed; Rocky; Tomb Raider; Robocop; Raging Bull; Poltergeist; The James Bond series; The Pink Panther; Moonstruck; Fargo (TV Show); Vikings (TV Show); The Handmaid’s Tale (TV Show); among others, all of which have generated not just huge revenue for the MGM studio and other marketing companies that own rights to them but also amassed jaw-dropping audience all over the world.
Considering Amazon studio has recently adopted an aggressive commercial fare type of production, it would be really interesting to see how MGM and Amazon handle how to run the new “film division”.