“The real financial value behind this deal is the intellectual property treasure in the vast catalog that we are working with the talented team at MGM to redefine and develop,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios, in an explanation.
Amazon’s appetite for movies has been starved during the pandemic. It paid $ 125 million for the rights to “Coming 2 America,” $ 80 million for “Borat Subsequent Moviefilm,” and $ 200 million for “The Tomorrow War,” a Chris Pratt adventure that blew on March 2 July will be released on Prime. Amazon also has Oscar ambitions to purchase the rights to “Sound of Metal,” which was nominated for Best Picture and other top prizes at this year’s ceremony.
When it comes to making their own successful films, Amazon has had problems for a long time. MGM managers could help: Michael De LucaThe MGM film chairman can look back on a success story that includes the franchises “Rush Hour”, “Austin Powers” and “Fifty Shades of Gray” at various companies.
MGM also has a television library with 17,000 episodes and a television studio showing “Vikings”, “The Handmaid’s Tale”, “Fargo” and various “Real Housewives” shows. In 2014 MGM acquired Mark Burnett’s production company One Three Media, which owns the rights to competitive series such as “The Voice”. Mr. Burnett, a controversial figure in Hollywood for helping shape Donald J. Trump’s image with “The Apprentice” and stayed close to him during his tenure as president, serving as television chairman of MGM.
Anchorage Capital, a New York investment firm, has been the majority owner of MGM for more than a decade. Previously, MGM was thrown between the owners and eventually ended up bankrupt along with declining DVD revenues. In 2010, it was worth around $ 2 billionAccording to analysts.
Kevin Ulrich, managing director of Anchorage and chairman of MGM, officially put the studio on the block late last year. Anchorage has been pressured by various stakeholders to exit the investment. Some agitators complained that Mr. Ulrich was overly in love with Hollywood and should have sold years ago.