Last week we brought you news of a rumour circulating that Amazon was considering purchasing MGM Studios in a $9billion USD deal. Well, it would seem that after a week spent with the iconic production and distribution house sitting in their basket, they have scraped the price down to $8.45billion and completed the purchase.
Throughout MGM’s 97-year history, they have made themselves such an integral part of the movie industry that their roaring lion is almost part of the cinematic experience, however, the hard times of the pandemic left them looking for a buyer.
Although rumours have circulated for years, it was confirmed last week that Mike Hopkins, the Senior Vice President of Amazon Studios and Prime Video, was dealing directly with MGM’s chairman Kevin Ulrich.
Amazon was keen to buy MGM to bolster its Prime Video content after it was revealed that of Amazon Prime’s 200 million worldwide members, only 175 million actually used the Prime Video service last year, thus Jeff Bezos and Co. are aiming to make it more profitable.
By purchasing MGM, it is believed that they will have access to a catalogue of classics, which they can now display, having acquired over 4,000 movies and 17,000 TV shows in the purchase.
MGM announced the merger stating that Amazon will help “preserve MGM’s heritage and catalogue of films,” as well as helping bring the classics that they are known for to the masses once more.
“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,” said Amazon’s Mike Hopkin.
Kevin Ulrich said 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.”
Aside from classics like 12 Angry Men and the James Bond franchise, MGM also has some very exciting projects under production with MGM’s film head Michael De Luca lining up Ridley Scott’s House of Gucci, Paul Thomas Anderson’s Soggy Bottom and Project Hail Mary, an adaptation of Andy Weir’s novel that will star Ryan Gosling.