Amazon announced a blockbuster $8.45 billion deal to purchase MGM Studios. The deal gives Amazon a huge boost of content as it tries to bolster its streaming and entertainment division to compete with Netflix, Disney+, HBO Max, and other streaming services.
The deal will give Amazon the rights to more than 17,000 hit shows, including The Handmaid's Tale, Fargo, Shark Tank, Survivor, and The Real Housewives. It will also have the rights to about 4,00 movies, including RoboCop, Legally Blonde, James Bond, and Rocky.
"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," said Mike Hopkins, senior vice president of Prime Video and Amazon Studios. "It's very exciting and provides so many opportunities for high-quality storytelling."
Amazon's acquisition of MGM is the second-largest in the company's history, trailing the massive $13.7 billion deal to purchase Whole Foods in 2017.
The deal comes one week after Amazon announced that Jeff Blackburn would return to the company to oversee its newly created Global Media & Entertainment division.
MGM, which has been owned by multiple hedge funds since it came out of bankruptcy in 2010, has been trying to sell itself for several years. According to the New York Times, the $8.45 billion price tag was 40% more than other prospective buyers were willing to pay.
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