NEW YORK — Online shopping giant Amazon is buying MGM, the movie and TV studio behind James Bond, \u201cLegally Blonde\u201d and \u201cShark Tank,\u201d with the hopes of filling its video streaming service with more stuff to watch.<\/p>\n
Amazon is paying $8.45 billion for MGM, making it the company\u2019s second-largest acquisition after it bought grocer Whole Foods for nearly $14 billion in 2017.<\/p>\n
The deal is the latest in the media industry that\u2019s 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.<\/p>\n
Amazon doesn\u2019t 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.<\/p>\n
Amazon said Wednesday that it would use MGM\u2019s vast library, which includes famous characters such as Rocky, RoboCop and Pink Panther, to create new movies and shows.<\/p>\n
Sucharita Kodali, an eCommerce analyst at Forrester Research Inc., said streaming companies need to have shows people can\u2019t watch elsewhere in order to standout and be competitive.<\/p>\n
\u201cThere is an arms race to get what you can while the window is open,\u201d she said. Plus, the price tag is just a tiny fraction of Amazon\u2019s valuation, which is nearing $2 trillion.<\/p>\n
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 \u201cThe Wizard of Oz\u201d and \u201cGone with the Wind,\u201d which is now owned by Warner Bros. And its sprawling California lot was bought by Sony.<\/p>\n
For much of the past decade, MGM juggled bankruptcy and a revolving door of owners while its new releases dwindled. Long up for sale, MGM\u2019s desirability was lessened, not just because of its partially auctioned-off library, but because its prized property — James Bond \u2014 isn\u2019t 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, \u201cNo Time to Die,\u201d has been on hold through the pandemic, with a fall release now planned.<\/p>\n
Its other upcoming movies include Paul Thomas Anderson\u2019s next film, \u201cSoggy Bottom,\u201d starring Bradley Cooper; Ridley Scott\u2019s \u201cHouse of Gucci,\u201d with Lady Gaga and Adam Driver; and the upcoming Aretha Franklin biopic \u201cRespect,\u201d with Jennifer Hudson. Its library still includes more than 4,000 movies, including \u201cSilence of the Lambs\u201d and \u201cThelma & Louise,\u201d and 17,000 TV shows, such as reality TV staples \u201cShark Tank\u201d and \u201cThe Real Housewives of Beverly Hills.\u201d Amazon will also get cable channel Epix out of the deal.<\/p>\n
Amazon already has its own studio, but has had mixed results. Two of its shows, \u201cThe Marvelous Mrs. Maisel\u201d and \u201cFleabag,\u201d won best comedy series Emmys. Although it has won several Oscars, including most recently for \u201cSound of Metal,\u201d many of its films have failed to click with audiences at the box office. Recently, Amazon has been spending on sports and splashy shows. It will stream \u201cThursday Night Football\u201d next year and is producing a \u201cLord of the Rings\u201d show, which reportedly cost $450 million for its first season alone.<\/p>\n
Seattle-based Amazon.com Inc. declined to say when it expects the deal to be finalized. But when it does, it will make Amazon, already one of the most powerful and valuable companies in the world, even bigger. Regulators around the world are scrutinizing Amazon\u2019s business practices, specifically the way it looks at information from businesses that sell goods on its site and uses it to create its own Amazon-branded products.<\/p>\n
A report by the House Judiciary Committee in October called for a possible breakup of Amazon and others, making it harder for them to buy other businesses and imposing new rules to safeguard competition.<\/p>\n
Amazon, founded in 1995 as an online bookstore, has become a $1.6 trillion behemoth that does a little bit of everything. It has a delivery business network that gets orders to people in two days or sooner; sells inhalers and insulin; has a cloud-computing business that powers the apps of Netflix and McDonald\u2019s; and has plans to send more than 3,200 satellites into space to beam internet service to Earth.<\/p>\n