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Amazon.com, Inc (NASDAQ: AMZN) took over MGM Studios for $8.5 billion. According to Amazon, the deal would strengthen its Amazon Studios, the prevailing production arm.
It is the second-biggest takeover by Amazon in its history. The company previously purchased the Whole Foods supermarket chain for $13.4 billion in 2017.
SVP (Amazon Studios and Prime Service) of Amazon, Mike Hopkins, said the purchase allows the company to develop and reimagine MGM’s IP. Following the takeover of MGM, the shares of Amazon spiked a little lower than 1%.
Amazon is spending $465 million for one season of the “Lord of the Rings” TV series to feature it on its Prime Video and increase MGM’s portfolio. It stays in the race with its peers HBO Max, Netflix, and Disney for streaming.
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