Why Amazon Spent $8.5 Billion to Land MGM, and What’s Next for the Studio Behind James Bond
variety.comAmazon bought MGM for its history — but not necessarily its standalone future.The e-commerce giant surprised Hollywood on Thursday by announcing the completion of its $8.5 billion acquisition of MGM, an iconic Hollywood brand whose presence in the modern entertainment industry has diminished over time and numerous changes in ownership since the mid-1980s.The Federal Trade Commission had suggested it might object to Amazon’s purchase of MGM, raising the prospect of a long fight.
On the heels of Thursday’s closing announcement, the FTC still raised the threat of a future challenge to the combination.Analysts expect the tech company to try and exploit MGM’s best-known pieces of intellectual property for future gain — but don’t believe the studio has a long path ahead as a separate, influential entity. “The reason for the acquisition seemed like they were after the big titles, the intellectual property, which of course, first and foremost, meant the James Bond franchise,” said Peter Newman, head of Tisch School of the Arts’ MBA/MFA program at New York University.For now, the expectation is that the bulk of MGM’s roughly 800 staffers will move to Amazon, where the company will operate, at least initially, as an independent label.
That includes the studio’s motion picture group chairman Michael De Luca and motion picture group president Pamela Abdy, who have been credited with landing a group of buzzy projects.
The two will report to Mike Hopkins, Prime Video and Amazon Studios’ head.If he remains, De Luca has deep relationships across the creative community that could be helpful to Amazon as it looks to bolster its content.
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