Amazon is buying MGM in a mega media deal for $8.45 billion. There is one particular reason for this.
And that reason is Bond, James Bond. Because of the 4,000 films and 17,000 series that now belong to Amazon, it is above all the rights to the spy film series that make the takeover so attractive.
Rumors of the acquisition had been circulating for some time. They have now been confirmed at the annual shareholder meeting today, Wednesday. So Amazon is buying MGM (Metro Goldwyn Mayer) for $8.45 billion. Provided the US antitrust authorities approve the deal.
After the purchase of the US supermarket chain Whole Foods in 2017, the acquisition of MGM is Amazon’s second largest acquisition. At the time, Amazon paid even more for Whole Foods, namely $13.7 billion.
MGM movies and series soon to be available on Prime
Amazon CEO Jeff Bezos particularly highlighted the film studio’s intellectual property as the deal’s greatest value when buying MGM.
The real financial value of the deal is the treasure trove of intellectual property […] that we intend to reinvent and develop with the talented team at MGM.
What is also clear is that all of MGM’s films and series, including “Rocky,” “Naturally Blonde” and “The Handmaid’s Report,” will be available to viewers on Amazon Prime in the future.
Nevertheless, when it comes to major film franchises, MGM is rather a small player in Hollywood. With one exception: James Bond. And it’s probably this very film series that inspired Amazon to buy it.
Amazon is buying MGM primarily because of James Bond
Because it gives Amazon’s streaming division a real unique selling point alongside its two big competitors Netflix and Disney. For customers, James Bond in particular could be the decisive reason for taking out a Prime subscription.
With the purchase, Amazon has secured the rights to all previous Bond films. However, it is not yet clear whether the latest film, “No Time to Die,” which has now been postponed to October 2021 due to the pandemic, will also be included.
The movie and streaming industry in the U.S. thus appears to be consolidating further. Just on Monday, AT&T announced that WarnerMedia and Discovery would be combined. This brings together the Warner Bros, Discovery Channel, CNN, HGTV and HBO brands.
By comparison, Amazon’s purchase of MGM is more of a mini-deal. But one that Amazon can easily afford. And above all, one that will allow the company to continue playing in the premier league of the big streaming and entertainment services.