Amazon CEO Jeff Bezos is excited about the company’s acquisition of Metro-Goldwyn-Mayer (MGM). The past couple of weeks, rumors surfaced of the company’s move to acquire one of the most iconic studios in Hollywood, and today, May 26, 2021, the announcement came about an agreement between the two companies.
The value of the agreement is $8.45 billion will give Amazon an extensive library of movies and television programs to offer its Prime Video subscribers. MGM’s catalog includes over 4,000 films and 17,000 TV shows, says the senior vice president of Prime Video and Amazon Studios Mike Hopkins.
Hopkins, who joined the company last year, explains that the abundance of intellectual property is the real financial value behind the deal. He added they intend to reimagine and develop that IP with MGM’s talented team:
It’s very exciting and provides so many opportunities for high-quality storytelling.
Bezos marveled at the “vast, deep catalog of much-beloved intellectual property” and limitless opportunities for the talented people from MGM and Amazon Studios to expand upon that IP bringing it into the 21 century. He told Amazon shareholders at their annual meeting that the company is really excited about this acquisition.
Most people recall MGM’s roaring lion logo and remember movies like the 1939 film “The Wizard of Oz,” a Metro-Goldwyn-Mayer production. It is one of the oldest studios in American, founded April 17, 1924, but it does not have the extensive franchise library as other studios.
So, why would Amazon want MGM, asks CNN reporter Frank Pallotta? “Three words: Bond, James Bond.”
MGM owns a portion of the highly profitable spy franchise but the Bond brand is controlled by Eon Productions. Nonetheless, the spy movies have racked up billions of dollars since its first film “Dr. No” 58 years ago.
The franchise’s films and the lead character embody a lifestyle that connects with audiences in all parts of the globe and pop culture. If Bond’s new home is Amazon, it would extend the company’s reach across many demographics attracting new streaming customers. Moreover, Bond is likely to please a significant portion of the existing 200 million paid subscribers.
“No Time to Die,” the latest Bond movie is scheduled to open in October after being delayed several times because of the coronavirus pandemic. MGM has other smaller franchises such as the “Rocky” trilogy, “Legally Blonde” parts one and two, and the “RoboCop” trilogy. The studio also owns Epix TV Network.
The deal is subject to the standard “regulatory approvals and other customary closing conditions.”
Written by Cathy Milne-Ware
CNN: Amazon buys MGM in a mega media deal; by Frank Pallotta
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Inset Image Courtesy of Dan Faber’s Flickr Page – Creative Commons License