Amazon Acquired MGM for $8.5 Billion to Take on Netflix and Disney

As the rivals like Netflix and Disney are dumping cash on profitable franchises, Amazon has been mum for a long time. Now, it opened up with a bang by acquiring MGM’s entertainment wing for $8.45 billion. This grand addition to Amazon Prime Video will help vintage viewers and fans of popular franchises like James Bond and Tom and Jerry to stick with Amazon.

Amazon Brought MGM Entertainment

Amazon Acquired MGM for $8.5 Billion to Take on Netflix and Disney

While the on-demand content streaming is generally picking up, the COVID-19 lockdown has risen rapidly. This led many home-borne viewers to rely on OTT platforms like Netflix, Amazon, Disney, etc for entertainment. While these platforms have earned well in these critical times, they have also lost content for the immediate months since the production all over the world has been paused.

This led streaming giants like Netflix to invest heavily in hit franchises and upcoming movies to keep their viewers entertained. And it’s not just Netflix, but also its rivals like Disney, Hulu, HBO Max, etc. Now, Amazon too makes a big bet by acquiring Metro Goldwyn Mayer’s entertainment wing, for a sum of $8.45 billion. This acquisition could be a significant addition to Amazon’s Prime Video, which already houses enough content to satisfy users.

The addition gives Amazon about 4,000 movies and 17,000 hours of television from MGM, which has several hit franchises like James Bond, Tom, and Jerry, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Tomb Raider, The Pink Panther, etc. But some iconic movies like The Wizard of Oz, Singin’ In the Rain, and Gone With the Wind aren’t included since they now belong to WarnerMedia.

Announcing this deal, the Senior Vice President of Prime Video and Amazon Studios, Mike Hopkins said, “The real financial value behind this deal is the treasure trove of IP 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.”

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