Amazon says it has reached an agreement to acquire Metro-Goldwyn-Mayer (MGM) Studios for $8.45 billion, ending more than a week of speculation over a deal that will see one of the biggest global technology conglomerates purchase an entertainment company with a lengthy history of churning out classics.
The deal was announced in a relatively short press releases that said Amazon will acquire the intellectual property rights to roughly 4,000 MGM-produced and distributed films along with thousands of hours of television content.
“Amazon will help preserve MGM’s heritage and catalog of films, and provide customers with greater access to these existing works,” an Amazon spokesperson wrote in a release. “Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling.”
In addition to the film content, MGM Studios owns and operates the premium cable movie network Epix. It was not clear if the deal reached this week included that asset or if it will be spun or sold off.
“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,” Mike Hopkins, a key Amazon executive in charge of the company’s Prime Video product, said in a statement. “It’s very exciting and provides so many opportunities for high-quality storytelling.”