Amazon Negotiating to Buy MGM
by Emily Nagle
Amazon is currently in talks to acquire MGM, one of the oldest and most successful film studios in Hollywood. As the ongoing streaming wars escalate, the acquisition would give the company a competitive edge. If finalized, this deal would be worth more than $10 billion – almost as much as Amazon made in the first quarter of 2021.
Why a studio? If Amazon purchases MGM, the studio’s content will become available on Prime Video, expanding their already vast catalogue of more than 20,000 shows and movies. MGM owns 17,000 hours of content – including thousands of films – and is one of the most profitable studios in the world, raking in $1.5 billion in revenue last year. This library includes James Bond, the fifth most-profitable film franchise of all time.
A benefit to Prime Video that sets it apart from its competitors is that it is included in Amazon’s Prime plan, which offers exclusive benefits like discounts and faster delivery. With the plan already being fairly popular, the content on Prime Video is easily accessible to millions. The platform is best known for original programming that includes “The Marvelous Mrs. Maisel” and “The Boys”, and also has digital content available to purchase.