Amazon is all set to acquire MGM studios taking a big step to broaden its entertainment industry. This acquisition is Amazon's second-largest in history, only after the $13.7 billion purchase of Whole Foods in 2017.

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

The statement of MGM Chairman Kevin Ulrich reads, “The opportunity to align MGM’s storied history with Amazon is an inspiring combination.” The agreement demonstrates Amazon's readiness to invest heavily in order to stay competitive in the cramped streaming business.

It is to be noted that “The Big Sick” and “Manchester By The Sea,” which won the 2017 Academy Award for best original screenplay, as well as the series “The Marvelous Mrs. Maisel” and “Transparent,” have all been big hits for Amazon in cinema and television programming. And an adaptation of "Lord of the Rings" is currently in production.