Amazon Raises the Streaming Stakes with MGM Acquisition

An MGM M&A

The online retailer becomes a worthy home entertainment contender practically overnight

So the rumors were true and Amazon does intend to upset the streaming market balance of power: the retail giant announced it acquired MGM Studios in a deal worth almost 8.5 billion dollars. Through this acquisition — its biggest so far in the home entertainment business — Amazon now owns more than 4.000 films and 17.000 TV shows belonging to MGM from 1986 onwards, including movies that have yet to be released such as Ridley Scott’s House of Gucci, Paul Thomas Anderson’s Soggy Bottom, Candyman, Respect and the next, repeatedly-delayed, James Bond film No Time to Die.

“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,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios, in a statement. “It’s very exciting and provides so many opportunities for high-quality storytelling”. What this means in practical terms remains to be seen, but the intellectual properties covered by that “treasure trove” reference include anything from Rocky, Legally Blonde, The Pink Panther and Poltergeist to 12 Angry Men, The Handmaid’s Tale and Vikings.

Arguably MGM’s most precious asset, of course, is none other than the James Bond film franchise, 50% of which is owned by the company. The other 50% is controlled by the Broccoli family and its production company, Eon. Everything Bond-related is overseen by Barbara Broccoli and her half-brother Michael Wilson, who also decide how to finance and distribute Bond films. It will certainly be interesting to see how this is handled in the future, as it was Sony Pictures who did the movie theatre and home edition distribution of Bond films since 2006. Amazon would also have to get Eon’s approval if it wanted e.g. to produce a Bond spin-off for its streaming service.

There can be no doubt, though, that this acquisition will help Amazon Prime Video…

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