The Fact News Service,
Amazon.com Inc said on Wednesday it is buying MGM, the fabled U.S. movie studio home to the James Bond franchise, for $8.45 billion, giving it a huge library of films and TV shows and ramping up competition with streaming rivals led by Netflix and Disney+. The deal aims to bolster Amazon’s television-focused studio with new and historic filmmaking from MGM, which has claimed other lucrative series including ‘Rocky’ and ‘Pink Panther’ since its founding in 1924.
Streaming video helps the world’s largest online retailer draw consumers to subscribe to Prime, a club with fast shipping, and to shop more once they’re members. Privately-held MGM, or Metro Goldwyn Mayer, also owns the Epix cable channel and makes popular TV shows including ‘Fargo’, ‘Vikings’ and ‘Shark Tank’. Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said in a news release that MGM`s library is rich with opportunities.
The real financial value behind this deal is the treasure trove of (intellectual property) in the deep catalogue that we plan to reimagine and develop together with MGM’s talented team,” he said. Amazon’s Hollywood studio purchase is a first for a big U.S. tech company and could spark further interest in Silicon Valley, a source familiar with the matter said. The company is betting big on entertainment, said Jesse Cohen, senior analyst at Investing.com.”There’s no better way to do that than by buying one of the most iconic movie studios in Hollywood,” he said. “It`s all about the content as the streaming war heats up.”