Tech

Amazon buys Hollywood Studio MGM with $ 8.45 billion in debt

MGM has a library of titles that includes the James Bond franchise.


Photo:

MGM Studio

Amazon..

AMZN 0.29%

com Inc. has agreed to purchase Hollywood Studio MGM Holdings for $ 8.45 billion, including debt, in a transaction that turns the movie business, which was founded in the silent era, into streaming assets of an e-commerce company.

The deal shows that Amazon is focusing on entertainment and seizing the opportunity to jump to the weight class.

According to someone familiar with the matter, the stock value of the transaction is about $ 6.5 billion. This is Amazon’s second-largest acquisition in history, after Whole Foods’ $ 13.7 billion purchase in 2017, forcing the streaming war to consolidate and gaining large amounts of competitive assets for larger players. As such, it emphasizes the premium that the content dictates.

The studio is best known for classics such as “Singin’in the Rain,” “Rocky,” and “The Pink Panther.” MGM has a library of titles that includes the James Bond franchise. It’s the most valuable asset in modern Hollywood that can be used to facilitate subscriber sign-up for Amazon’s Prime Video Streaming service.

This deal could raise antitrust concerns about Amazon, which is already at the center of multiple investigations due to its size and power.

Write to Dave Sebastian (dave.sebastian@wsj.com)

Copyright © 2020 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Amazon buys Hollywood Studio MGM with $ 8.45 billion in debt

Source link Amazon buys Hollywood Studio MGM with $ 8.45 billion in debt

Back to top button