Tech behemoth Amazon will buy entertainment firm MGM, the home of James Bond, for $8.45 billion, it was announced on Wednesday.
The pair said they have entered into a definitive merger agreement, and added that MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV shows.
MGM has a huge catalogue of more than 4,000 films, including James Bond titles, and Legally Blonde, as well as 17,000 TV shows, including Fargo and The Handmaid’s Tale.
The update follows speculation over a deal earlier this month.
Analysts had said at the time a transaction would bring Amazon MGM’s rich back catalogue of successful franchises and give it access to the famous studio’s new movies, without having to enter into expensive auctions with rival streaming services.
Mike Hopkins, senior vice president of Prime Video and Amazon Studios, today said: “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.”
The agreement marks the second largest acquisition Amazon, led by Jeff Bezos, has ever made. In 2017 it agreed a $13.7 billion deal for Whole Foods.
Kevin Ulrich, chairman of the board of directors of MGM, said: “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. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”
Completion of the deal is subject to regulatory approvals.