Reprinted from The Los Angeles Times by Ryan Faughnder and Wendy Lee on May 26, 2021.
After years of speculation about the merging of Big Tech and Hollywood, Amazon.com Inc. said Wednesday that it is acquiring Metro-Goldwyn-Mayer Studios for $8.45 billion — snapping up a library of more than 4,000 movies and storied franchises including James Bond, Rocky and The Pink Panther — in a watershed moment for the entertainment industry.
The deal, subject to regulatory approval, would be the Seattle online retail giant’s second-largest purchase ever, following its $13.7-billion acquisition of Whole Foods in 2017.
It comes at a pivotal time as competition ramps up among streaming services such as Netflix, Disney+ and HBO Max, where hit shows are key to driving consumers to subscribe. The rapid changes are fueling a wave of consolidation in the media landscape. Just last week, AT&T Inc. said it would spin off WarnerMedia in a $43-billion deal with Discovery, a remarkable retreat for the telecommunications giant only three years after it bought the assets. …
