Amazon announced that it would pay $8.45 billion for MGM Studios.
The enormous purchase by Amazon is expected to boost the business’s Prime Video service, which CEO Jeff Bezos has previously stated helps entice Prime customers who then buy more from the company.
Following the announcement, Amazon’s stock rose by less than 1%.
According to Mike Hopkins, senior vice president of Prime Video and Amazon Studios, the acquisition will allow Amazon to “reimagine and exploit” MGM’s “treasure mine of [intellectual property].”
The MGM deal is Amazon’s second-largest in history, trailing only the $13.4 billion it paid for the Whole Foods supermarket chain in 2017.
As buyers were stranded at home due to the pandemic last year, Amazon reinforced its grip on consumer retail, and the company said in April that it now has 200 million Prime members, up 50 million from January 2020.
The producers behind James Bond have stated that the acquisition will have no impact on the imminent release of No Time to Die in theaters.
Barbara Broccoli and Michael Wilson stated, “We are dedicated to continuing to make James Bond films for the worldwide theatrical audience.”
MGM Holdings, the parent company of MGM Studios, had been considering a sale since 2020, according to reports.
According to sources, Amazon’s purchase of MGM is a first for a major US tech company and could pique interest in Silicon Valley.
Read more on Tech Gist Africa:
Amazon is in negotiations to acquire MGM Studios for $9 billion
Netflix is reported to be considering launching its own video game unit
In a record-breaking first quarter, Amazon surpasses $100 billion in revenue