The months of speculation can now be put to rest as it has been announced that yes, in fact, Amazon and MGM will be merging in a deal that will see the e-commerce giant acquiring the storied studio for $8.45 billion.
The announcement was broad in nature with no details or press briefing planned. This is the second recent mega-merger following the planned combination of AT&T’s WarnerMedia and Discovery and the first groundbreaking deal in a long-anticipated marriage of big tech players and Hollywood, all sparked by the digital revolution in content and the explosion of streaming.
In a posting on Deadline, it was reported that Amazon held its annual shareholder meeting on Tuesday and the hefty pricetag, while no sweat for a company with a $1.6 trillion market cap, is a big win for MGM chairman Kevin Ulrich, whose Anchorage Capital has been a major investor for a decade.
A few of the films/franchises included in the deal include the James Bond collection, Lord of the Rings, Tomb Raider, and more.
Mike Hopkins, senior VP of Prime Video and Amazon Studios, said about the deal:
“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.”
MGM chairman Kevin Ulrich added:
“It has been an honor to have been a part of the incredible transformation of Metro Goldwyn Mayer. To get here took immensely talented people with a true belief in one vision. On behalf of the Board, I would like to thank the MGM team who have helped us arrive at this historic day.”
“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.”
The deal to close but noted that it’s subject to regulatory approval so stay tuned as more developments are released.
