Amazon to Acquire MGM Studios for a Whopping $9 Billion
Amazon Acquires MGM for $8.45 Billion
In a significant move to bolster its Hollywood ambitions, Amazon has announced its acquisition of MGM for $8.45 billion. The deal, which is subject to regulatory approval, makes it the second-largest acquisition for Amazon, surpassed only by the purchase of Whole Foods in 2017 for $13.7 billion.
According to reports from NBC News and Variety, both Apple and Comcast had previously considered buying MGM for a valuation of roughly $6 billion, including MGM's debt. However, it seems that Amazon has outbid its competitors in this instance.
MGM is renowned for its extensive library of over 4,000 films, including James Bond, Robocop, Silence of the Lambs, Stargate, Tomb Raider, and The Pink Panther. The acquisition also grants Amazon access to 17,000 TV shows, including Fargo and The Handmaid's Tale.
The deal is expected to provide opportunities for high-quality storytelling, according to Mike Hopkins, senior vice president of Prime Video and Amazon Studios. However, it remains to be seen how Amazon will utilise MGM's vast intellectual property.
One area where the impact of the acquisition may be felt is in the James Bond franchise. While MGM owns a portion of the franchise, Eon Productions, owned by the Broccoli family, also holds rights and maintains creative control over the film series. The Broccoli family has been resistant to Bond spin-offs or TV series, and it is unlikely that they would allow any Bond film to debut on Amazon Prime Video.
The Broccoli family, specifically Barbara Broccoli and Michael G. Wilson, held creative control over the James Bond franchise for nearly three decades. However, they relinquished their producing role after Amazon MGM took over creative control in March 2025; they remain co-owners of the franchise but are no longer in charge of producing the films.
Amazon is expected to argue that the deal won't result in fewer streaming choices for consumers. The trend of smaller media companies consolidating to keep up with the big guys is evident in both the Amazon-MGM and AT&T-WarnerMedia-Discovery deals. AT&T recently announced a $43 billion merger between WarnerMedia and Discovery, consolidating various media companies including HBO, Warner Bros., CNN, Food Network, HGTV, and DC Comics under one roof.
It is important to note that the deal is not primarily about competing with streaming rivals like Netflix, Hulu, or Disney+, but about acquiring intellectual property. Amazon has already demonstrated its willingness to invest heavily in original content, having thrown $465 million at the first season of its forthcoming Lord of the Rings prequel series.
The acquisition of MGM's IP is expected to make users less likely to cancel their Amazon Prime account. MGM has several buzzworthy projects lined up, including Ridley Scott's House of Gucci, the next Bond flick No Time to Die, and an unnamed Paul Thomas Anderson film.
The deal is not without its regulatory hurdles, however. It must be approved to ensure it doesn't violate antitrust regulations. Amazon has stated that it will work closely with regulators to address any concerns and ensure a smooth transition.
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