In Amazon’s second largest acquisition ever, they have officially purchased MGM Studios for $8.45 billion.
The studio behind James Bond, Pink Panther and Rocky now has a new home, as reported by Variety. Metro-Goldwyn-Mayer will now be a part of Amazon Studios, bringing it’s storied history of filmmaking to compliment the tv focused programming of Amazon. There has been no word yet as to what this means for all the current films in the works at MGM, like the next upcoming James Bond film, but since Amazon is looking to further round out their catalogue of films with MGM to support their tv endeavors, its likely those projects will continue without bother from their new parent company.
MGM has been quietly shopped around for some time now, so the actual acquisition isn’t what’s surprising for those that already knew about it. What is surprising is the price, since many believe Amazon has overpaid by a few billion dollars. It’s likely the price hike came from the IP’s that MGM holds, such as the rights to the Bond franchise, which they share with Eon Productions. Now that they are all under the same umbrella, there’s even a potential that the next Bond film could premiere on Amazon Prime Video, or at the very least be streamed exclusively on Amazon’s streaming service following a theatrical release.
Don Scales of Investis Digital when asked on the matter if this is the last major studio to fall he explained, “I doubt it’s all over with, there is still Lionsgates out there. I think that would be a quality asset for somebody. So I don’t think we’re done with consolidation yet.”
He went on to explain that “A push toward streaming is going to continue in a big way. And I think there’s more chips to fall here. I think you’re gonna see somebody like, Apple coming in next.” He concluded by explaining that “It looks good for Amazon from a content standpoint, they put out quality Oscar worthy films and MGM has a long history, including James Bond amoung other things, so will be good to see what they can do together”
This continues a trend that’s been seen lately around all parts of the entertainment industry, with publishers and production companies making large acquisitions based on IP and their value, and perhaps even overpaying for them to close the deal. Microsoft’s purchase of Zenimax is one such example, and it seems in both cases that these purchases are being made to continue flooding their services with new or exclusive content. Though the current projects in the works may be unaffected as previously mentioned, it’s far more interesting to consider what exactly Amazon has planned for the future of MGM and its IP’s.