Amazon Buys MGM For $8.45 Billion

LOS ANGELES, CA — Amazon purchased the iconic MGM Studios for $8.45 billion, the companies announced Wednesday, merging a lion of Old Hollywood with a behemoth of the streaming era. It's a move that will vastly expand the titles Amazon can offer on it's streaming service.

"Amazon and MGM today announced that they have entered into a definitive merger agreement under which Amazon will acquire MGM for a purchase price of $8.45 billion," the statement said.

"MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV show programming. Amazon will help preserve MGM's heritage and catalog of films, and provide customers with greater access to these existing works.

"Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling."

Rumors of the deal had been swirling for days. It has the potential to shake streaming entertainment by adding MGM's vast catalog including the James Bond and Rocky movie franchises, to the content that Amazon can provide on its streaming services. In addition to the catalog of 4,000 films, the sale gives Amazon 17,000 TV shows including hits such as "Fargo," "The Handmaid's Tale" and "Shark Tank," and the "The Apprentice."

"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," said Mike Hopkins, senior vice president of Prime Video and Amazon Studios.

"It's very exciting and provides so many opportunities for high-quality storytelling."

Kevin Ulrich, chairman of the board of directors of MGM, acknowledged the symbolism of the deal.

"I am very proud that MGM's lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM's storied history with Amazon is an inspiring combination.

"It has been an honor to have been a part of the incredible transformation of Metro Goldwyn Mayer. To get here took immensely talented people with a true belief in one vision. On behalf of the board, I would like to thank the MGM team who have helped us arrive at this historic day."

City News Service and Patch Staffer Paige Austin contributed to this report.