Pandemic or not, business continues and that’s what Amazon Inc has maintained as they’ve gone on to create their second largest acquisition in the history of the company, just a couple of hours ago. They’ve acquired MGM Studios for a whopping price of $6.5 billion which excludes all debts of the latter!
Founded all the way back in 1924, the iconic Hollywood studio owned by MGM Holdings will now be turned into an asset for the e-commerce giant, Amazon. The James Bond franchise and Rocky are some of the titles that will be added to Amazon’s streaming service Prime Video, post this record-breaking deal between the two giants.
The equity value of the acquisition is valued at around $6.5 billion and if debt is assumed, we can say the total value of the deal is around $8.45 billion, as per reports. Its $13.7 billion acquisition of Whole Foods in 2017 remains its biggest deal but with this purchase of Metro-Goldwyn-Mayer Studios, they’ve emphasised the importance they place on the entertainment part of its business too!
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“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,” said senior vice president of Prime Video and Amazon Studios, Mike Hopkins.
The Studio has created classics over the decades like RoboCop and Pink Panther, including more recent TV shows like Fargo, Vikings and Shark Tank. Rivals Netflix and Disney will have their eyes and ears on this deal as they know Amazon is not going to back down in the entertainment business either!
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