What does Amazon acquisition of MGM mean?

Amazon’s nearly $8.5 billion deal to purchase the film and television studio MGM is official. The two companies announced Wednesday that MGM is now a part of Prime Video and Amazon Studios — cementing the merger that was first announced last May.

Who is acquiring MGM?

Amazon
Amazon on Thursday said that it closed its acquisition of MGM, in an $8.45 billion deal that will allow the e-commerce giant to expand its TV and movie offerings.

What is the strategic rationale for Amazon’s acquisition of MGM?

From Amazon’s point of view, there is a strategic reason to acquire MGM: to gain a greater market share in the streaming industry. With the rise of Disney+ and Apple TV in the recent years, Amazon Prime has been looking for an avenue of inorganic growth, and the MGM acquisition fits into their objectives.

Is Amazon still buying MGM?

Yes, nearly a year after it announced its $8.45 billion acquisition of MGM, the everything store finally closed the deal Thursday, saying the classic Hollywood studio “will complement Prime Video and Amazon Studios’ work in delivering a diverse offering of entertainment choices to customers.” No doubt its 4,000 films …

Does Bezos own MGM?

Amazon bought MGM because of its “vast, deep catalogue of much beloved intellectual property,” CEO Jeff Bezos said Wednesday during the company’s annual shareholder meeting. “And with the talent at MGM and the talent at Amazon Studios, we can reimagine and develop that IP for the 21st century.

When did Amazon announce acquisition of MGM?

May 2021
Amazon founder Jeff Bezos, speaking to company shareholders the day the deal was announced in May 2021, said that it bought MGM because of its “vast, deep catalog of much beloved intellectual property,” and that it plans to “reimagine and develop that IP for the 21st century.”

Why did Amazon pay so much for MGM?

Amazon on Wednesday formally announced that it has agreed to pay $8.45 billion to acquire MGM. The purchase price represents a 41% premium over earlier valuations made by Apple and Comcast, after each company considered their own potential acquisitions of the studio assets baring a 97-year-old Hollywood brand.

Is Apple going to buy Netflix?

(AAPL) is plotting a move to acquire Netflix Inc. (NFLX) or Walt Disney Co. (DIS) appears to have been quashed by one of the iPhone maker’s senior vice presidents.

Why did Amazon and MGM merge?

Founder Bezos, announcing the deal, said it was driven by IP and promised to “help preserve MGM’s heritage and catalog of films, and to provide customers with greater access to these existing works.” Amazon will also “empower MGM to continue to do what they do best, great storytelling.”