Amazon agrees to acquire MGM for $8.45 billion

Amazon on Wednesday said it has signed an agreement to acquire Metro Goldwyn Mayer for $8.45 billion.

MGM's vast catalog of more than 4,000 films includes "Basic Instinct," "Creed," "James Bond" and "Legally Blonde." It also has some 17,000 TV shows, including "Fargo" and "The Handmaid's Tale."

All together, MGM's collection of movies and TV shows have won more than 180 Academy Awards and 100 Emmys.

"The real financial value behind this deal is the treasure trove of IP [intellectual property] in the deep catalog that we plan to reimagine and develop together with MGM’s talented team," Mike Hopkins, the senior vice president of Prime Video and Amazon Studios, said in a statement announcing the acquisition. "It’s very exciting and provides so many opportunities for high-quality storytelling."

Kevin Ulrich, the chairman of MGM's board of directors, said the merger marked a "historic day."

"I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision," Ulrich said, referring to the film studio's founding in 1919.

"The opportunity to align MGM’s storied history with Amazon is an inspiring combination," he added.

Completion of the acquisition remains subject to regulatory approvals, the companies noted.

Amazon's growing entertainment division has racked up industry awards. The retail behemoth, however, has come under scrutiny for its massive size, with some accusing the company of antitrust practices.