The Rumors Were True: Amazon Buys MGM in $8.5 Billion Deal

The rumors over the last couple of weeks turned out to be on target: E-commerce giant Amazon (NASDAQ: AMZN) announced today that it is buying movie studio MGM, in a deal worth $8.45 billion. The similarly named hospitality and entertainment company MGM Resorts International plays no part in this deal. MGM spun off the movie studio as an entirely separate company many years ago. Amazon and MGM have not provided a firm closing date, and the agreement is subject to the usual gauntlet of regulatory approvals.

The buyout gives Amazon access to MGM's film catalog of more than 4,000 titles. Its movie franchises include the James Bond and Rocky films. The studio also comes with 17,000 TV shows such as Hulu's The Handmaid's Tale and the FX hit Fargo. Amazon Prime already hosts the historical fantasy show Vikings, also produced by MGM.

Image source: Getty Images.

Source Fool.com