Amazon buying MGM Studios

Amazon is paying about $8.5 billion for the iconic studio behind the James Bond movie franchise and TV shows like Shark Tank. MGM is one of the oldest studios in Hollywood, founded in 1924 when films were still silent.

What does this mean for the entertainment market? Amazon likely hopes the deal will help it better compete with streaming giants Netflix, Disney+, and others. AT&T and Discovery announced last week that they would combine media companies, creating a powerhouse that includes HGTV, CNN, Food Network and HBO. This will be Amazon’s second-biggest acquisition. It bought Whole Foods for nearly $14 billion in 2017.

Dig deeper: Read Collin Garbarino’s report in Muse about how traditional TV networks are trying to earn advertiser dollars this fall.