Amazon Agrees to Buy MGM for $8.45 Billion

News about Amazon's purchase of Metro-Goldwyn-Mayer Studios Inc. for $9 billion was made on the Internet earlier this month. But none of the companies did confirm or comment on the matter at the time.

Now, Amazon has announced its commitment to acquire the entire MGM content backlog dating back nearly a hundred years. Amazon is hoping to improve its current on-demand vision offerings with more than 4,000 films and 17,000 hours of shows.

In recent years, Amazon has invested heavily in its own Amazon Studios to produce original Prime video shows and movies. The Platform will compete on other streaming platforms, such as Netflix and Disney+, with this acquisition. The Amazon studios are augmented by the directory of MGM, according to Amazon. The Prime Video and Amazon Studios Senior Vice President Mike Hopkins said,

The real economic value behind the deal is the treasure trove of IP in the deep directory that we intend together with the talented team of MGM to reimagine and develop. It is extremely exciting and offers so many high-quality narrative opportunities.

However, this announcement is only the start of the procurement process. The process is carried out by US anti-trust regulators, which could take years to finish regularly.