Amazon acquires MGM Studios in $8.45 billion deal to boost Prime Video

The acquisition is subject to regulatory approvals.

What you need to know

• Amazon will acquire MGM for $8.45 billion.
• MGM had been looking for a buyer since last year.
• The company had previously held acquisition talks with Apple, Comcast, and Netflix.

Amazon today announced that it has signed an agreement to acquire iconic film studio MGM for $8.45 billion. In a press release announcing the deal, Amazon said that it plans to "preserve MGM's heritage" and empower the company to "continue to do what they do best: great storytelling."

MGM, which is best known for its James Bond film franchise, boasts a massive catalog of over 4,000 movies and 17,000 TV shows. Aside from the upcoming Bond film No Time to Die, MGM has quite a few exciting releases in the pipeline — including The Addams Family 2, House of Gucci, Respect, and the untitled Paul Thomas Anderson film.

As reported by Variety, MGM began looking for a buyer back in December. Both Apple and Comcast had reportedly considered acquiring the company, but a deal couldn't be reached.

Mike Hopkins, Senior Vice President of Prime Video and Amazon Studios, said in a statement:

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.

Needless to say, the MGM acquisition will allow Amazon to provide its users with greater access to MGM's vast catalog and better compete against rival streaming services. Amazon's Prime Video is still behind Netflix in terms of subscriber base. Amazon will also have to worry about the new streaming giant that will be created after AT&T's WarnerMedia and Discovery merge next year.

News of the acquisition comes just a day after DC's Attorney General filed a lawsuit against Amazon for "illegal control of prices" on its platform.