Amazon acquires MGM in mega-deal

Amazon is investing even more heavily in growing its position in the entertainment world. The company made announced that it made a deal to acquire MGM, the home of James Bond and one of the most iconic movie studios in Hollywood.

The deal, which is valued at $8.45 billion, gives Amazon an extensive library of film and TV shows that it can use to fill out its Prime Video content coffers. MGM has a catalogue with more than 4,000 films and 17,000 TV shows, according to Mike Hopkins, who heads Prime Video and Amazon Studios.

“The real financial value behind this deal is the treasure trove of IP in the deep catalogue that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling,” he added.

The two companies said that the completion of the deal “is subject to regulatory approvals and other customary closing conditions.”

Even though streaming is a small part of Amazon’s empire, the company has focused on becoming a more prominent player in the entertainment world as of late. For example, a highly anticipated series based on “The Lord of the Rings” is in the works. Prime Video — which also features original and award-winning shows such as “The Marvelous Mrs Maisel” — is tied to Amazon’s immensely popular Prime program, which offers faster delivery and has more than 200 million paid subscribers.

Those kinds of numbers make it a competitor to the likes of Netflix (NFLX), which has 208 million subscribers. (REUTERS)