Topline
Amazon finalized its $8.45 billion purchase of MGM Thursday, paving the way for thousands of films to be added to its platform—but the acquisition still won’t give Amazon users access to most of the legendary studio’s classic titles like The Wizard of Oz and Singin’ in the Rain, as MGM’s library from 1986 and earlier now belongs to Ted Turner and WarnerMedia.
The Tin Man (Jack Haley), Dorothy (Judy Garland) and the Scarecrow (Ray Bolger) in MGM’s ‘The Wizard … [+]
Key Facts
MGM, one of the leading film studios during Hollywood’s Golden Age, has been around since the silent film era in the 1920s, becoming well-known for Technicolor musicals like An American in Paris and iconic films like Gone with the Wind.
MGM also acquired films from United Artists (UA) when it bought that film studio in 1981.
Media mogul Ted Turner bought MGM in 1985 and then subsequently sold the company’s production and distribution assets in 1986, along with United Artists—but kept control of MGM’s library of all its films from before May 1986, which includes more than 2,000 titles.
In addition to the Golden Age films, that gave Turner control over later classics like Fame and A Christmas Story as well—but not UA movies like the Rocky and James Bond franchises, which would now be part of the potential Amazon deal.
Turner’s library of MGM films are now under the control of WarnerMedia and parent company AT&T, after Turner Broadcasting System merged with Time Warner Inc. in 1995, and a number of the classic films are now streaming on HBO Max.
WarnerMedia division Turner Classic Movies confirmed to Forbes in an email that Turner and WarnerMedia still hold the rights to MGM’s pre-May 1986 catalog, and noted the company also has a deal with MGM giving them control of many UA films through 2022.
Big Number
$1.2 billion. That’s how much Turner ended up paying for MGM’s pre-1986 library, the Los Angeles Times reported in 1986.
Tangent
Amazon will still get more than 4,000 films and 17,000 television shows from MGM as part of the deal, even without the pre-1986 catalog. In addition to the James Bond and Rocky franchises, the studio’s catalog includes films like The Silence of the Lambs and the Pink Panther and Legally Blonde series, as well as television series like The Handmaid’s Tale, The Voice and The Real Housewives of Beverly Hills. (The companies did not say Thursday when content would become available to stream on Amazon.) MGM’s deals with other producers could potentially become an issue for Amazon, however. Eon Productions, which co-owns the rights to the James Bond franchise, has already said any future Bond films will still be released in cinemas rather than solely through Amazon, and producers have said they wouldn’t support any plans for Amazon to make a Bond television series for its platform.
Key Background
Amazon and MGM said Thursday the acquisition of the studio was finalized and MGM is now a part of the ecommerce giant, after the purchase was first announced in May 2021. The companies were previously waiting on government regulators before closing the deal, and made their announcement Thursday after a deadline for the Federal Trade Commission to lodge any objections passed without a legal challenge being filed. The acquisition marks the second-biggest in Amazon’s history, after its $13.7 billion purchase of Whole Foods in 2017. Though it won’t be getting access to MGM’s full library from its century-long history, Amazon’s acquisition of MGM is a significant investment in the company’s entertainment division, bolstering its streaming offerings to help Amazon Prime compete with other streaming platforms. The deal will also likely be a boon to MGM, giving the studio more solid financial footing and a massive distribution arm. The studio has faced a series of financial setbacks since its mid century heyday, including declaring bankruptcy in 2010.
Further Reading
Amazon Closes $8.5 Billion MGM Deal—Adding Blockbusters To Its Platform (Forbes)
Amazon’s Biggest Acquisitions Have Allowed It To Become A Marketplace For Nearly Everything (Forbes)
Turner Sells Fabled MGM but Keeps a Lion’s Share (Los Angeles Times)
Source: https://www.forbes.com/sites/alisondurkee/2022/03/17/amazon-closes-mgm-deal—but-heres-why-you-still-wont-find-wizard-of-oz-or-gone-with-the-wind-on-there/