Amazon and MGM announced that they have entered into a definitive merger agreement under which Amazon will acquire MGM for a purchase price of $8.45 billion.
MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV show programming.
Amazon will help preserve MGM’s heritage and catalog of films, and provide customers with greater access to these existing works, the company said in a press release. Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling.
MGM’s catalog includes films such as 12 Angry Men, Basic Instinct, Creed, Rocky, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Silence of the Lambs and thousands more.
“MGM has a vast catalog with more than 4,000 films and many other icons—as well as 17,000 TV shows that have collectively won more than 180 Academy Awards and 100 Emmys,” said Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios. “The real financial value behind this deal is the treasure trove of IP in the deep catalog 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.”
Kevin Ulrich, chairman of the board at MGM, called it “an honor to have been a part of the incredible transformation of Metro Goldwyn Mayer.”
“To get here took immensely talented people with a true belief in one vision,” Urich said. “On behalf of the Board, I would like to thank the MGM team who have helped us arrive at this historic day.
“I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision,” he added. “The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”
Completion of this transaction is subject to regulatory approvals and other customary closing conditions.