If you are beginning to feel that Amazon is creeping into every aspect of your life— it’s because it has. Amazon, and its outgoing CEO billionaire Jeff Bezos, has decided to purchase the iconic Hollywood film studio MGM— which is home to an extensive library of movies and TV shows including the epochal James Bond and Rocky franchises— for over $8 billion.
In an effort to further ramp up its insatiable thirst for “high-quality storytelling” world domination, Amazon announced on Wednesday it has entered into a definitive merger agreement to purchase MGM for a price of $8.45 billion. The latest move marks Amazon’s largest acquisition since it bought Whole Foods for $13.7 billion in 2017, and coincides with the company’s previous investments to the tune of $11 billion on content for its music services and streaming video services last year.
With a number of new streaming services including Disney+ and HBO Max hitting consumers’ TVs, Amazon felt increased pressure to acquire more programming. Indeed, CEO Jeff Bezos has not been secretive about his desire to amass a movie empire in order to keep its 200 million Prime Subscribers loyal, especially as other retail rivals such as Walmart Inc. unveil more sophisticated online stores.
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MGM has been in the takeover spotlight in recent years, but the closing of a sale has never materialized until now. The company revamped its efforts last year, when it allegedly hired advisers to find offers. As of recent, Amazon has been on a trek to acquire smaller startups that could eventually pose a threat to its conglomerate empire, including footwear seller Zappos, Diapers.com parent Quidsi, and even game platform Twitch.
Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
