We’re kind of surprised this deal went through, honestly, but when Jeff Bezos wants something, boyhowdy he gets it within 2 days. The entertainment world is a buzz with morning with the report that Amazon has successfully made their offer to purchase MGM and it’s holdings for $8.45 billion. Originally, the price we were hearing was a cool $9 billion, so obviously this order had Prime.
Amazon currently has an estimated market cap of $1.7 trillion.
Prime Video and Amazon Studios head Mike Hopkins said of the deal: “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. It’s very exciting and provides so many opportunities for high-quality storytelling.”
Bezos has since offered this statement:
“We’re looking forward to reimagining and developing the deep catalog of MGM. The acquisition’s thesis here is really very simple: MGM has a vast, deep catalog of much-loved intellectual property. With the talented people at MGM and Amazon Studios, we can reimagine and develop that IP for the 21s century… People who love stories are going to be the big beneficiaries.”
This isn’t a done deal yet, as a purchase of this magnitude “is subject to regulatory approvals and other customary closing conditions.”
Also, this isn’t the highest Amazon has payed for another company. Remember when they purchased Whole Foods for about $14 billion for Whole Foods in 2017?
We will let you know what we hear.