Amazon to buy Hollywood studio MGM for $8.45 billion, with debt1 min read . Updated: 26 May 2021, 06:37 PM IST
- Deal signals that e-commerce company is renewing emphasis on entertainment
Amazon.com Inc. has agreed to buy the Hollywood studio MGM Holdings for $8.45 billion, including debt, in a deal that would turn a film operation founded in the silent era into a streaming asset for the e-commerce company.
The pact signals that Amazon is renewing its emphasis on entertainment and seizing an opportunity to jump up in weight class.
The deal would mark Amazon’s second-largest acquisition in history, behind its $13.7 billion purchase of Whole Foods in 2017, and highlight the premium that content is commanding as streaming wars force consolidation and drive bigger players to bulk up with assets that help them compete.
The studio is best known for classics such as “Singin’ in the Rain," as well as “Rocky" and “The Pink Panther." MGM has a library of titles, including the James Bond franchise, that, in contemporary Hollywood, is most valuable as an asset that can be used to drive subscriber sign-ups to Amazon’s Prime Video streaming service.
The deal could heighten antitrust concerns for Amazon, which is already at the center of multiple probes because of its size and power.
This story has been published from a wire agency feed without modifications to the text.
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