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| Amazon acquires MGM for $ 8.45 billion |
Amazon has signed a deal to acquire film and television company MGM for $ 8.45 billion.
This means there is a content library that is said to contain around 4,000 movies and 17,000 hours of television.
The acquisition has the potential to help Amazon attract more Prime users. Prime Video competes with competitors like Netflix and Disney Plus.
MGM is probably best known as the Hollywood studio behind the James Bond and Rocky franchises, but its library has everything from classic movies like "12 Angry Men" to recent TV shows.
Amazon said the acquisition gave customers more connections with MGM's business and allowed the studio to continue telling great stories.
Amazon added: "The real financial value of this deal is the intellectual property on the list that we are looking to redesign and develop with the MGM team."
Amazon Media Empire:
Amazon's media business is only a small portion of its overall empire, but it spends billions of dollars on content every year.
Currently, more than 200 million people worldwide subscribe to Amazon Prime. As a result, a large percentage of Prime subscribers have taken advantage of the free Prime Video streaming.
More than 175 million videos were released last year, so adding thousands of movies and TV shows could benefit both parties.
There are reports that Amazon may acquire MGM for the first time in mid-May. Reports of various transactions.
Likewise, the Wall Street Journal reported on May 24 that Amazon was close to finalizing the MGM purchase.
At the same time, MGM currently owns a group of private companies.
MGM sale reports were released last December.
When the company merged, MGM was sold in Hollywood as the company tried to expand its content library to compete with Netflix and Disney.
AT&T recently formed its own media company, WarnerMedia, to partner with the television company Discovery. As a result, it has emerged as the second largest media company in the world by revenue outside Disney.
Both companies have their own streaming services (HBO Max and Discovery Plus) which increases the ability to combine them into one service.