TOPLINE Amazon is preparing to make a $9 billion investment in the company’s film and television offerings by purchasing vaunted Hollywood studio&nbsp;<a href="https://www.forbes.com/sites/carlieporterfield/2021/05/24/amazon-reportedly-close-to-buying-mgm-for-nearly-9-billion/?sh=74c23a063d4c">MGM</a>, the&nbsp;Wall Street Journal&nbsp;<a href="https://www.wsj.com/articles/amazon-nears-deal-to-buy-hollywood-studio-mgm-11621880759?mod=hp_lead_pos1" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;Monday, the latest in a string of major acquisitions the company has made to boost its standing in even more areas of people’s lives—here are the most notable:



<h3 class="wp-block-heading" id="h-key-facts">KEY FACTS</h3>



Amazon’s largest acquisition to date was when it&nbsp;<a href="https://www.bbc.com/news/business-40306099" target="_blank" rel="noreferrer noopener">purchased</a>&nbsp;Whole Foods in 2017 for $13.7 billion.



The company has also spent more than a billion dollars on shoe ecommerce giant&nbsp;<a href="https://techcrunch.com/2009/11/02/amazon-closes-zappos-deal-ends-up-paying-1-2-billion/" target="_blank" rel="noreferrer noopener">Zappos</a>&nbsp;($1.2 billion in 2009) and autonomous vehicle company&nbsp;<a href="https://www.forbes.com/sites/tomtaulli/2020/06/27/amazon-buys-zoox-why-self-driving-technology-is-existential/?sh=7714dde17c0f">Zoox</a>, which is&nbsp;<a href="https://zoox.com/about/" target="_blank" rel="noreferrer noopener">developing</a>&nbsp;a self-driving rideshare service ($1.2 billion in 2020).



Other pricey acquisitions include smart doorbell maker&nbsp;<a href="https://www.geekwire.com/2019/new-filing-amazon-spent-1-65b-acquisitions-2018-headlined-ring-pillpack-deals/" target="_blank" rel="noreferrer noopener">Ring</a>&nbsp;($839 million in 2018), online pharmacist PillPack ($753 million in 2018), video game streaming platform&nbsp;<a href="https://www.businessinsider.com/amazon-buys-twitch-2014-8" target="_blank" rel="noreferrer noopener">Twitch</a>&nbsp;($970 million in 2014), robotics company&nbsp;<a href="https://dealbook.nytimes.com/2012/03/19/amazon-com-buys-kiva-systems-for-775-million/" target="_blank" rel="noreferrer noopener">Kiva Systems</a>&nbsp;($775 million in 2012) and&nbsp;<a href="https://techcrunch.com/2010/11/08/confirmed-amazon-spends-545-million-on-diapers-com-parent-quidsi/" target="_blank" rel="noreferrer noopener">Quidsi</a>, the parent company of Diapers.com and other ecommerce sites ($545 million in 2010).



Amazon has invested in its cloud computing arm Amazon Web Services—which now makes up the&nbsp;<a href="https://www.washingtonpost.com/technology/interactive/2021/amazon-apple-facebook-google-acquisitions/" target="_blank" rel="noreferrer noopener">majority</a>&nbsp;of the company’s operating income—by purchasing more than a dozen companies in that sector, including $500 million for mobile video service&nbsp;<a href="https://techcrunch.com/2015/09/03/amazon-acquires-elemental-technologies-for-a-reported-500-million-in-cash/" target="_blank" rel="noreferrer noopener">Elemental Technologies</a>&nbsp;in 2018 and $20 million for cyber security startup&nbsp;<a href="https://techcrunch.com/2017/01/09/amazon-aws-harvest-ai/?ncid=rss&amp;utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&amp;sr_share=twitter" target="_blank" rel="noreferrer noopener">harvest.ai</a>&nbsp;in 2017.



In addition to its expected MGM purchase, Amazon has also invested in the film industry by acquiring&nbsp;<a href="https://venturebeat.com/2015/10/30/25-years-of-imdb-the-worlds-biggest-online-movie-database/" target="_blank" rel="noreferrer noopener">IMDB</a>&nbsp;(purchased in 1998 as part of a $55 million acquisition with two other companies), DVD rental service&nbsp;<a href="https://www.ft.com/content/9aa7315e-2482-11e0-8c0e-00144feab49a" target="_blank" rel="noreferrer noopener">Lovefilm</a>&nbsp;(for £200 million or approximately $317 million in 2011) and film grosses website&nbsp;<a href="https://variety.com/2008/digital/news/imdb-links-up-with-box-office-mojo-1117997423/" target="_blank" rel="noreferrer noopener">Box Office Mojo</a>&nbsp;(in 2008 for an undisclosed amount).



Amazon has strengthened its foothold in the book industry where it got its start by acquiring companies like audiobook seller&nbsp;<a href="https://www.cnet.com/news/amazon-acquires-audible-for-300-million/" target="_blank" rel="noreferrer noopener">Audible</a>&nbsp;($300 million in 2008), social network&nbsp;<a href="https://techcrunch.com/2013/03/28/amazon-acquires-social-reading-site-goodreads/" target="_blank" rel="noreferrer noopener">Goodreads</a>&nbsp;(in 2013 for an undisclosed amount), book publisher&nbsp;<a href="https://money.cnn.com/2012/06/04/technology/amazon-avalon-books/index.htm" target="_blank" rel="noreferrer noopener">Avalon Books</a>&nbsp;(in 2012 for an undisclosed amount) and used bookseller&nbsp;<a href="https://techcrunch.com/2008/08/01/amazon-to-acquire-abebooks/" target="_blank" rel="noreferrer noopener">AbeBooks</a>&nbsp;(in 2008 for an undisclosed amount).



<h3 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h3>



“Amazon has an inventive, customer-obsessed, long-term oriented culture where entrepreneurs thrive,” an Amazon spokesperson said in an emailed statement to&nbsp;Forbes, adding the company helps those it acquires “to accelerate their businesses and delight customers with the help of Amazon’s resources and technology.” “We operate in a diverse range of businesses, from retail and entertainment to consumer electronics and technology services, and have thriving, well-established competition in each of these areas,” the spokesperson noted.



<h3 class="wp-block-heading" id="h-chief-critic">CHIEF CRITIC</h3>



Amazon and other tech giants’ acquisition practices have been criticized by lawmakers, who have accused the companies of practicing anti-competitive behavior by buying up smaller rivals. “As gatekeepers to the digital economy, these platforms enjoy the power to pick winners and losers, shake down small businesses, and enrich themselves while choking off competitors,” Rep. David Cicilline (D-R.I.), who chairs the House Antitrust Subcommittee,&nbsp;<a href="https://cicilline.house.gov/press-release/cicilline-opening-statement-big-tech-antitrust-hearing" target="_blank" rel="noreferrer noopener">said</a>&nbsp;in his opening statement for a hearing concerning Amazon, Apple, Facebook and Google. “Their ability to dictate terms, call the shots, upend entire sectors, and inspire fear represent the powers of a private government.” Amazon has&nbsp;<a href="https://www.aboutamazon.com/news/policy-news-views/statement-by-jeff-bezos-to-the-u-s-house-committee-on-the-judiciary" target="_blank" rel="noreferrer noopener">denied</a>&nbsp;the antitrust allegations against it and maintains that it competes with other platforms like eBay, Etsy, Walmart and Target and brick and mortar stores worldwide, noting the platform’s sales make up less than 4% of U.S. retail.



<h3 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h3>



Sources cited by the&nbsp;Journal&nbsp;say a deal between Amazon and MGM could be finalized as early as this week, though nothing has yet been finalized and “there are no guarantees they will ultimately reach an agreement.” Should the deal go through, MGM’s library would substantially bolster Amazon’s streaming platform by giving it access to&nbsp;<a href="https://www.hollywoodreporter.com/business/business-news/amazon-acquire-mgm-1234954655/" target="_blank" rel="noreferrer noopener">thousands</a>&nbsp;of additional film and television titles, helping Amazon Prime better compete with other streaming powerhouses like Netflix. MGM’s century-long history dates back to the silent era, giving Amazon access to films like the&nbsp;James Bond&nbsp;franchise and&nbsp;Rocky&nbsp;films and newer properties like&nbsp;The Handmaid’s Tale&nbsp;television series. (Golden Age classics made at the studio before 1948 like&nbsp;The Wizard of Oz&nbsp;and&nbsp;Gone with the Wind&nbsp;have already been sold to Warner Bros, however, the&nbsp;Journal&nbsp;notes.) The reported $9 billion deal comes after MGM was most recently valued at $5.5 billion in December, the&nbsp;Journal&nbsp;reports, though its stock price has soared in response to news of the expected deal.



<h3 class="wp-block-heading" id="h-further-reading">FURTHER READING</h3>



<a href="https://www.forbes.com/sites/carlieporterfield/2021/05/24/amazon-reportedly-close-to-buying-mgm-for-nearly-9-billion/?sh=74c23a063d4c">Amazon Reportedly Close To Buying MGM For Nearly $9 Billion</a>&nbsp;(Forbes)



<a href="https://www.wsj.com/articles/amazon-nears-deal-to-buy-hollywood-studio-mgm-11621880759" target="_blank" rel="noreferrer noopener">Amazon Nears Deal to Buy Hollywood Studio MGM</a>&nbsp;(Wall Street Journal)



<a href="https://www.washingtonpost.com/technology/interactive/2021/amazon-apple-facebook-google-acquisitions/" target="_blank" rel="noreferrer noopener">How Big Tech got so big: Hundreds of acquisitions</a>&nbsp;(Washington Post)



<a href="https://www.forbes.com/sites/dawnchmielewski/2021/01/30/mgms-back-on-the-block-and-floating-a-10-billion-price-tag-dont-count-on-it/?sh=7f1cb80eb740">MGM’s Back On The Block And Floating A $10 Billion Price Tag. Don’t Count On It.</a>&nbsp;(Forbes)



By Alison Durkee, Forbes Staff

Tag: MGM

FORBES AFRICA SOCIAL MEDIA

Amazon’s Biggest Acquisitions Have Allowed It To Become A Marketplace For Nearly Everything