New post Need visibility? Apply for a FREE post for your Startup.  Apply Here

Big StoryMobileNews

Amazon Acquires MGM Movie Studios for US$8.5 Billion

1 Mins read

In a move to become a top player in Hollywood, Amazon said that it has struck a deal to acquire the iconic MGM (Metro-Goldwyn-Mayer) movie studio for $8.5 billion.

The deal will give Amazon a movies studio with a catalog of film, and television titles to beef up its Amazon Prime streaming service.

The deal comes as companies are exploring different ways to compete against bigger companies such as Netflix and Disney, in the streaming business.

While Discovery and WarnerMedia recently announced plans to merge, smaller Hollywood companies like ViacomCBS, Fox, Lionsgate and AMC are predicted by industry insiders to be acquired within a matter of years.

Experts believe that the deal is a financial win for MGM, as the studio is valued at the end of 2020, at around $5.5 billion, including debt.

Apple and Comcast have,vat a point, looked into acquiring MGM. Comcast currently owns NBCUniversal, which is the parent company of NBC News.

Commenting on the acquisition, Mike Hopkins, senior VP of Prime Video and Amazon Studios, said in a press release that Amazon plans to create new content using MGM’s stable of intellectual property.

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,” he said. “It’s very exciting and provides so many opportunities for high-quality storytelling,” Mike Hopkins said.

Read more: Amazon’s New Biometric Payment System Let Users Pay With Their Palm

Last week, Amazon said that it was creating a new global media and entertainment division, led by one of its highest-ranking executives, Jeff Blackburn.

Amazon has also allocated at least $465 million for the first season of its “Lord of the Rings” TV show, which is an unprecedented budget for a streaming series.

Despite Amazon Studios launching about a decade ago, the company has had little success developing its own hit movies or shows and has instead relied on acquisitions from other studios.

Following the MGM deal, Amazon is open to creating its own mainstream series, thanks to MGM’s library of well-known characters.

Don’t miss any tech news ever!

We don’t spam! Read our privacy policy for more info.

791 posts

About author
When I'm not reading about tech, I'm writing about it, or thinking about the next weird food combinations to try. I do all these with my headphones plugged in, and a sticky note on my computer with the words: "The galaxy needs saving, Star Lord."
Related posts

WeCare secures $350,000 to propel ethical, sustainable lab-grown diamonds

2 Mins read
The search and mining of diamonds have been one of the causes of major armed conflicts in mining communities around the world,…

Apple removes WhatsApp, Threads and other apps in China over 'security concerns'

1 Mins read
Amidst the tight control over internet services in China, Apple has removed several popular messaging apps from its App Store in the…

X to charge new users for posting in effort to curb bot invasion

2 Mins read
X, formerly known as Twitter, is making plans to tackle the scourge of bots and spam on its platform. The plan, which…
Newsletter Subscription

🤞 Don’t miss any update!

We don’t spam! Read more in our privacy policy

Join our Telegram channel here -

Leave a Reply