Amazon will now be the owner of the massive and legendary Hollywood studio MGM.

On Wednesday morning, May 26, the online retail giant and the iconic film studio issued a joint statement in which they announced that they had finalized a merger deal.

Amazon has agreed to purchase MGM for $8.45 billion though the deal is still pending regulatory approval.

Amazon Smashes Down the Door of the Film Business

Amazon has long had ambitions of expanding into the movie business and becoming a major player in the field. With this deal, Amazon will acquire the rights to MGM’s enormous catalog of movies and shows, which, in total, contains well over 17,000 entries.

Some of the movies Amazon will now have the rights to include such classic thrillers as “Basic Instinct” and “Silence of the Lambs” as well as enormously popular franchises like the Rocky series and the many James Bond flicks.

Upon approval of the merger deal, the entire MGM catalog will be added to Amazon’s Prime Video streaming service, which will be a huge boost to its ability to compete against rivals in the field like HBO Max and Netflix, the two platforms currently vying for the top spot.

Mike Hopkins, the senior vice president of Prime Video and of Amazon Studios, said that this deal is “very exciting and provides so many opportunities for high-quality storytelling.”

Hopkins also exulted that “The real financial value behind this deal is the treasure trove of intellectual property in the deep catalog that we plan to re-imagine and develop together with MGM’s talented team.”

MGM’s executives are also undoubtedly quite happy with the deal as MGM was valued only a year ago at a mere $5.5 billion.

This deal is thus the second-largest deal in which Amazon has ever been a signatory, behind only its purchase of Whole Foods back in 2017 for $13.7 billion.