Amazon Closes $8.5 Billion Deal to Buy MGM

Daniel Attoe
Daniel Attoe

Updated · Mar 18, 2022

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Amazon is counting on the movie studio to boost its entertainment industry standing while adding content to Prime Video.

Deal Closed

American conglomerate Amazon announced on Thursday that it has closed a deal to acquire MGM. The deal was first announced in May. Now completed, it will bring the iconic studio and its extensive catalog of movies and TV shows to Amazon’s library.

“MGM has a nearly century-long legacy of producing exceptional entertainment, and we share their commitment to delivering a broad slate of original films and television shows to a global audience,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios in a statement.

The concluded MGM is Amazon’s second-largest acquisition after it bought grocery business Whole Foods for $13.4 billion in 2017. 

The European Commission approved the deal earlier this week, declaring it “would not significantly reduce competition” in relevant video markets. While US regulator FTC did not explicitly approve the deal, it did not throw up any legal challenges either.

MGM, behind classic films like the James Bond franchise, Rocky, The Addams Family, and Legally Blonde, will add thousands of titles to Amazon’s streaming service, Prime Video. The company is also banking on the deal to bolster its position among rivals like Netflix, Hulu, and Disney Plus.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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