MGM Studios sold to Amazon for $8.45 billion

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We knew that Amazon had interest in the entertainment industry. After all, they started their business on book sales and opened a film and tv series streaming platform. But now, we know how serious they are about positioning themselves in the industry, as they complete a transaction that will see them acquire MGM Studios.

A Bold Move

Although this is not Amazon’s biggest move (it bought Whole Foods for $13.7 billion in 2017), it is certainly considered by all specialists in the industry as a bold move, that will reposition them in the entertainment industry, at a completely new level. What it does, more than anything, is to state clearly their decision to grow their streaming platform bigger, and more rapidly. We can imagine that the coronavirus crisis and the popularity of Netflix during that time, made their decision that much easier than it would have been before.

This $8.45 billion transaction was announced by Kevin Ulrich, MGM Chairman, who said the two companies would form an inspiring combination. The announcement did not affect the price of Amazon’s shares in any way, but it is easy to imagine that it will strengthen its position on the market, in the months and years to come. If you want to acquire some of their shares, find a trading platform that will enable you to do so.

A Great Addition to Amazon Prime

Nowadays, streaming platforms are looking to acquire the rights of as many films and tv series as they can. It’s in this perspective, that many years ago now, Disney acquired Fox, for example. Netflix is known in the industry to be quite aggressive when it comes to acquiring titles. They want everything and the full control of it. What Amazon just did, is to add over 4,000 films and 17,000 tv shows to its catalogue, in one transaction. There is no doubt that it will help Amazon Prime gain new subscribers.

The truth is, the competition is becoming ferocious form streaming platforms. With the arrival of Disney+ in 2020, it became clear that the future of the audio-visual industry had just moved online. When they launched “Mulan” on their platform, instead of in cinemas, the message was well-received by everyone, except cinema chains.

Apple has also just started, and we can assume that they haven’t yet made their big move yet. Watch out for another bold one, in the industry, as they will look to add to their catalogue as well, in record time.