How much is Amazon worth? Jeff Bezos to buy iconic MGM studios in massive $8.5B deal
'With the talent at Amazon and the talent at MGM Studio, we can reimagine and develop that IP for the 21st century,' says Amazon CEO Jeff Bezos
After acquiring Whole Foods for around $14 Billion in 2017, Amazon is all set for its second-largest acquisition. The deal is nearly finalized in its bid to acquire the historic Metro-Goldwyn Mayor Studios. The legendary film and television studio will reportedly be sold to Jeff Bezos' Amazon for $8.45 billion. The studio is recognized for creating classics like 'Gone With The Wind', the James Bond franchise, The Hobbit franchise and shows like Fargo, Vikings and Shark Tank in recent times.
This is believed to be an attempt by Amazon to amp up their streaming service Amazon Prime Video above their key competitors Netflix, Disney, and Apple. The deal will give Amazon Prime subscribers access to more than 4,000 movies and 7,000 shows produced by MGM Studios after May 1986. However, 2,000 movie titles produced before May 1986, like 'Wizard of Oz' or 'Gone With The Wind', will not come under the purview of Amazon and will continue to be held by Turner and WarnerMedia.
Amazon CEO Jeff Bezos spoke about the acquisition in a recent annual meeting, stating, "The acquisition thesis here is really very simple. MGM has a vast, deep catalog of much-beloved intellectual property. And with the talent at Amazon and the talent at MGM Studio, we can reimagine and develop that IP for the 21st century. It will be a lot of fun work and people who love stories will be the big beneficiaries."
What is Amazon's total worth?
The $8.45 billion deal is awaiting regulatory approvals and other routine prerequisites and will most likely be closed by the end of 2021. The deal with MGM will be directly integrated into Amazon Prime Video which has more than 200 million members worldwide.
According to Morgan Stanley, households with Amazon Prime membership spend approximately $3,000 a year on Amazon in general. This is a direct result of the company offering perks like faster shipping and free delivery to Prime members. It is one of the major reasons why Amazon wishes to invest more in Prime and emerge as the top streaming service.
Daily Mail reported that the MGM Studios had some debt burden and was looking for buyers for a while. Originally, their worth was estimated around $5 billion to $6 billion. However, eventually, Amazon is buying the label for $8.45 billion.
The amount is quite minuscule for the global business behemoth with a total market worth of $1.76 trillion, as of May 2021. Amazon founder and CEO Jeff Bezos has a net worth of $186 billion at present.