NEW YORK — Online giant Amazon is buying MGM, the movie and TV studio behind James Bond, “Legally Blonde” and “Shark Tank,” in the latest move of an escalating streaming war between providers racing to capture content for subscribers.
Amazon is paying $8.45 billion for MGM, making it the company’s second-largest acquisition after it bought grocer Whole Foods for nearly $14 billion in 2017.
The deal is the latest in the media industry that’s aimed at boosting streaming services to compete against Netflix and Disney+. AT&T and Discovery announced last week that they would combine media companies, creating a powerhouse that includes HGTV, CNN, Food Network and HBO.
Amazon doesn’t say how many people watch its Prime Video streaming service, but more than 200 million people have access to it because they pay for Prime membership, which gives them faster shipping and other perks.
Amazon said Wednesday that it would use MGM’s vast library, which includes famous characters such as Rocky, RoboCop and Pink Panther, to create new movies and shows.
“It’s going to be a lot of fun work,” said Amazon founder Jeff Bezos, during the company’s shareholder meeting on Wednesday. “People who love stories are going to be the big beneficiaries.”
Sucharita Kodali, an eCommerce analyst at Forrester Research Inc., said streaming companies need shows people can’t watch elsewhere in order to standout and be competitive.
“There is an arms race to get what you can while the window is open,” she said. Plus, the price tag is just a tiny fraction of Amazon’s valuation, which is nearing $2 trillion.
Known for its roaring lion logo, MGM is one of the oldest studios in Hollywood, founded in 1924 when films were still silent. But its shine has faded considerably over the years. In the mid-1980s, it sold much of its pre-1948 catalog, including “The Wizard of Oz” and “Gone with the Wind,” which is now owned by Warner Bros. And its sprawling California lot was bought by Sony.
Long up for sale, MGM’s desirability was lessened because its prized property — James Bond — isn’t owned outright. MGM splits ownership of it with Barbara Broccoli and Michael G. Wilson, who have ultimate control over the franchise. The release of the latest James Bond entry, “No Time to Die,” has been on hold through the pandemic, with a fall release now planned.
MGM’s library still includes more than 4,000 movies, including “Silence of the Lambs” and “Thelma & Louise,” and 17,000 TV shows, such as reality TV staples “Shark Tank” and “The Real Housewives of Beverly Hills.” Amazon also gets cable channel Epix out of the deal.
