Last week, Amazon announced that it is acquiring one of the most famous film studios in Hollywood MGM studio for $8.45 billion, which is the second largest acquisition by Amazon after the purchase of the retail chain Whole Foods four years ago for which Jeff Bezos paid 13.7 billion dollars.
MGM studio is the owner of the films about the most famous film agent 007, but it also owns a catalog of 4,000 films and 17,000 television shows that Amazon will now offer through its streaming service Amazon Prime Video.
To date, Amazon has acquired a large number of companies from various sectors, from healthcare to entertainment, thus diversifying its core revenue. In the last 20 years, this tech giant has acquired more than 1,298 companies.
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In 2017, Amazon paid $13.7 billion for the purchase of Whole Foods Market which remains the company’s largest acquisition to date. The purchase of Whole Foods provided Amazon with physical space to sell its devices such as the Echo Dot. It also allowed Amazon to collect valuable purchasing data about its customers to better understand their preferences for offline shopping.
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Before MGM studio, the acquisition of the robotaxi company Zoox was Amazon’s second largest acquisition. According to their reported agreement, Amazon has the rights to use Zoox’s transportation technology for ride-hailing or logistics services. With the acquisition of MGM, about 21,000 films and TV shows will be added to Amazon’s content library, helping Amazon to keep up with strong competition in the content streaming industry. MGM owns the rights to the series "The Handmaid's Tale" and "Shark Tank", as well as the James Bond and Rocky franchises.
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