Amazon and MGM today announced that they have entered into a definitive merger agreement under which Amazon will acquire MGM for a purchase price of $8.45 billion. MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV show programming. Amazon will help preserve MGM’s heritage and catalog of films, and provide customers with greater access to these existing works. Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling.
“MGM has a vast catalog with more than 4,000 films — 12 Angry Men, Basic Instinct, Creed, James Bond, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and many other icons — as well as 17,000 TV shows — including Fargo, The Handmaid’s Tale, and Vikings — that have collectively won more than 180 Academy Awards and 100 Emmys,” said Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios, in a statement. “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.”
“It has been an honor to have been a part of the incredible transformation of Metro Goldwyn Mayer. To get here took immensely talented people with a true belief in one vision. On behalf of the Board, I would like to thank the MGM team who have helped us arrive at this historic day,” said Kevin Ulrich, Chairman of the Board of Directors of MGM, in a statement. “I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”
Completion of this transaction is subject to regulatory approvals and other customary closing conditions.
MacDailyNews Take: Smart move by Bezos that will make Amazon Prime even more sticky.
I signed up for Amazon Prime mainly to watch the later seasons of “The Expanse” (after it was no longer on SciFi). After catching up on those two seasons, I planned to cancel. However, I found other content I enjoyed, much more than on Hulu. I also subscribe to Audible (part of Amazon) for audiobooks. Guess I’m “stuck” on Amazon.
One of the late night hosts pointed out that if the deal goes through Jeff Bezos (one of Donald Trump’s frequent targets) would own the rights to The Apprentice — including those long-rumored, expletive-filled outtakes. I wonder if this means Trump’s criticism of Bezos’ Washington Post will go away, or increase? Hmmmmm…..
I wish Apple services would include audio books in their bundle(s). Even as just a “rental” and not long-term ownership of the audiobooks.
Dang, this is a major coup for Amazon.
Apple could have bought this with change found in Tim Cook’s couch.
They missed an opportunity.
I was thinking the same, Apple+ could use the back catalogue for sure… puzzling..
Perhaps Apple has a “signal to noise” ratio that they want to keep for Apple TV+ that could be ‘diluted’ by a back catalog, hence the continued shunning of purchasing other media catalogs.
There’s a signal to noise ratio, alright. It’s the sound of me cancelling my subscription to Apple TV+ as soon as the free trial expires. I’m not paying for a service so bereft of content. What the hell is Tim Cook doing with all of that money?
Tim Cook, outmaneuvered again.
Yes, but he bought those awful Beats, for just 3 billion!!!
Beats headphones brought in $1.5 in revenue in 2014. It has certainly more than doubled since. That doesn’t even count the extra money that Apple Music has earned thanks to the Beats Music audience, streetcred, and IP. The investment paid for itself years ago.
Beats is still awful no matter how much money they took in for seven years. If Cook was not asleep at the switch, MGM would would prove far more lucrative and pay for itself in record time.
Got it Apple Apologist?…
Yes, I get it. You think that Apple is some sort of hobby and that Tim Cook shouldn’t be worried about profits. Da, comrade.
“Yes, I get it.”
NO, you do not get it — you READ it.
No acknowledgement MGM profits would easily surpass Beats or incompetent COOK missed potentially the most lucrative Apple acquisition for a small investment.
Success would easily exceed crappy headphones and offensive lyrics with wholesome wide variety gold entertainment and thousands of titles.
“You think that Apple is some sort of hobby and that Tim Cook shouldn’t be worried about profits.”
DEFLECTION Number One and Number Two, again, an arrogant LYING A-HOLE telling me what I think. For the 10th time you don’t know what I think!
Obvious you are projecting falsely what you think, not what I think. Typical Saul Alinsky tactic and a cowardly maneuver we expect from you.
More proof no way in the world you were a prosecutor. Profession maintains a high standard of integrity bound to court justice to prosecute using facts. NOT making up LIES and FALSELY accusing others on a daily basis.
I would normally say you should remember that, but it won’t do any good. You don’t care and LYING is just a tool in your Leftist toolbox…
Stick jockeys should not be confused for consumers friend. They are in opposite sides of the table.
IMO Beats as a brand was bolstered by Apple’s acquisition helping both brands and resulting in a nice chunk of revenue. Not sure if the future holds as much promise now that the novelty is gone. Stable for now. In other news Bose has ventured into providing hearing aid devices, Apple may want to keep an eye on that for their Beats division.
Indeed!
Imagine the value and profits from MGM streaming over the years. There is only ONE MGM, but lots of crappy headphone makers…
I ran MGM TV for eight years in the 90,s. Amazon wanted Sony but could not agree on price. 8.5b for MGM is at least 2b over value. The library is not the old MGM library, which is owned by Warner’s…now merged with Discovery. Bond is a very valuable franchise but is not Marvel. Plus the Broccli family owns 50 percent of everything Bond and has creative control. The IP is solid, I used it to great success with shows like Athena Outer Limits and Stargate SG1.there is not as much IP in the library as Amazon thinks and the movie library is the old UA library, amazing films, but not contemporary. Plus the rights to each film are very complicated. A nice buy by Amazon but Apple can do way better and be patient with Apple TV +. Sony is a better buy. Disney is the ultimate swing for the fences and hit a home run.
So for example, all the old musicals shown in “That’s Entertainment” are not included?
The indiewire and Forbes articles explain a bit better what is part of the content library Amazon purchased. Looking forward to watching “Handmaiden’s Tale”. 🙂
https://www.indiewire.com/2021/05/amazon-mgm-wizard-of-oz-gone-with-the-wind-1234640259/
https://www.forbes.com/sites/alisondurkee/2021/05/26/amazon-buys-mgm—but-heres-why-you-still-wont-find-wizard-of-oz-or-gone-with-the-wind-on-there/?sh=219ac306f4ca
Correct….norr is The Wizard of Oz or Gone with the Wind among so many others!
In general it seems MGM content before 1985 is not included unless it was part of the UA library that is not part of the Warner holdings.
Apple will snag Warner/Discovery……
I like many of the originals on Apple TV+, but they do need a good back-catalog to be competitive. I think buying WarnerMedia would be a good move for them.