The announcement has arrived. Amazon will buy MGM, acronym of Metro-Goldwyn-Mayer, one of the "Big Five" of the American film industry as well as the major of Gone with the Wind, the Tom and Jerry cartoon and the James Bond franchise. The agreed amount is equal to 8,45 billions of dollars, the second-highest amount ever spent by Amazon after the $13,7 billion it paid to buy Whole Foods in 2017.
The agreement between Amazon and Mgm was announced yesterday, May 25, by the US press.
Thanks to this acquisition, the e-commerce giant led by Jeff Bezos will be able to strengthen its offer in the entertainment and streaming sector, where it is already present with Prime Videos, which with its 150 million subscribers is the second most popular streaming service in the world after Netflix and before Disney+. The purpose of the acquisition is also to give impetus to the Amazon Studios for cinema and TV.
“MGM has an extensive catalog with over 4.000 filmssays Mike Hopkins, senior vice president of Prime Video and Amazon Studios, noting "the true financial value of this deal is the company's treasure trove of catalog intellectual property," he adds. A colossus that has almost 100 years of history.
Recall that a few weeks ago another major acquisition took the industry by surprise. This is the agreement that will lead to the merger of WarnerMedia (controlled by AT&T) with Discovery for 43 billions of dollars.
On the Nasdaq Amazon shares they gain 0,22% to $3.266.
