Amazon (AMZN) said on Wednesday that it's signed an agreement to buy Hollywood studio MGM for $8.45 billion as it seeks ammunition in the streaming wars against competitors like Netflix (NFLX) and Disney (DIS).
In announcing the deal, Amazon pointed out that MGM, which is nearly 100 years old, has a huge catalog of more than 4,000 movies including the "James Bond" franchise and 17,000 TV shows including "Fargo" and "The Handmaid's Tale." Amazon said the trove of films will be particularly beneficial to Amazon Studios, which has mostly focused on TV show programming.
MGM has actively been exploring a sale since December, looking to cash in on streaming-video services seeking content. The Wall Street Journal reported in December that MGM had a market value of roughly $5.5 billion, significantly less than the price tag Amazon agreed to.
'Hard to imagine any basis for blocking the deal'
Amazon noted on Wednesday that the deal is subject to regulatory approvals. While Amazon has attracted antitrust scrutiny, legal experts say U.S. regulators are unlikely to stop the e-commerce giant from making its second-biggest acquisition after Whole Foods.