Amazon has agreed to buy the MGM studios, one of the oldest studios in Hollywood for movies and TV show productions.
MGM that is Metro Goldwyn Mayer studios was created in 1924 and has been part of the big 5 studios for Hollywood. As the name suggests the studio was created by acquiring and bringing together 3 different studios into a merger.
The 3 studios being Goldwyn Pictures created by the Movie Mogul Samuel Goldwyn, Metro Pictures and Louis Mayer Pictures created by another Movie Mogul of the same name, these were acquired by Marcus Loew who formed the famous major studio.
MGM had filed for Bankruptcy in 2010 and later recovered from it. MGM was reported to be available to buy during December of last year.
The Amazon MGM Deal:
MGM sales dropped during the pandemic due to the shortage of projects. As many moved to OTT platforms for entertainment. One of the most anticipated film was delayed for release several times. Amazon was reported to be reaching a deal during the middle of May.
The studio was speculated to cost around $5 Billion, however, Amazon has agreed to buy it for $ 8.45 billion which is pretty much more than what was expected. This would be the company’s second most expensive addition. The e-commerce and streaming platform also announced a budget of $465 million recently for the new upcoming show of Lord of the Rings.
What to expect from the deal:
The deal will result into Amazon acquiring the long collection of the Studio and adding it to their streaming platform Prime. With Netflix and Disney+ in competition, they possibly reached the deal to expand their movie and tv collection for the audience. MGM being only a few years shy from a century of existence has to have years’ worth of library of worth classics, great hits, and furthermore since the movies did not have sound.
The company had its fair share of hits, losses, and changes of ownership. It also has several famous shows including Vikings, Fargo, and The Handmaids Tale. Also, in addition, the company has years of James Bond movies which everything would eventually be part of the deal and be acquired by the streaming platform.
The date for the finalization of the deal is not announced yet.
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