Amazon is Buying MGM Studios for $8.45B
Amazon.com will purchase MGM Studios for $8.45 billion, CNBC reported. This deal is the second-largest acquisition in Amazon's history, behind its purchase of Whole Foods in 2017 for $13.7 billion. MGM has been looking for a buyer for several years after emerging from bankruptcy in 2010.
Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said in a statement that the company hopes to take advantage of MGM's wide-ranging catalog of 4,000 films and 17,000 TV shows, as well as it's filmmaking history. This purchase can help grow Amazon Studios, the e-commerce giant's film and TV division.
Amazon has been investing in video content for years in hopes to bolster Prime memberships. Last year, it spent $11 billion on video and music content, resulting in 200 million Prime memberships globally. This most recent deal with MGM gives Amazon ownership of many blockbuster movies and hit TV shows.
Last week, Amazon announced it was hiring back Jack Blackburn, a former Amazon executive, to oversee a new Global Media and Entertainment division. This division will merge its media offerings under one umbrella, including Prime Video, Amazon Studios, Amazon Games, Twitch, and its music and podcast businesses.
Total Retail's Take: Amazon's acquisition of MGM Studios solidifies the company's dedication to remain competitive with Netflix, Disney Plus, Hulu and other services in the streaming market. However, the deal could increase antitrust scrutiny for Amazon. Currently, the company is facing ongoing investigations by federal agencies and state attorneys general, and last year, the House Judiciary antitrust subcommittee released a report claiming Amazon had monopoly power over third-party sellers. In fact, just yesterday new antitrust claims were raised against Amazon when D.C. Attorney General Karl Racine announced he's suing the company for unfairly pricing contracts with third-party sellers.
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Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.