Online retail giant Amazon is purchasing movie and television studio MGM, a longtime Hollywood powerhouse, for $8.45 billion.
By purchasing MGM, Amazon gains access to the studio's extensive rights library which includes feature film franchises like "James Bond," "Rocky" and "The Terminator" as well as television franchises like "Shark Tank," "The Handmaid's Tale" and "Survivor."
With its purchase, Amazon also aims to increase the output of its original programming on its Amazon Prime streaming platform.
MGM's sale to Amazon was first floated last week, and rumors persisted on Monday when the Wall Street Journal reported on Monday that the two sides were close to a deal.
The deal is Amazon's second-largest acquisition after buying grocer Whole Foods for nearly $14 billion in 2017.
Reuters reported in December that MGM had explored selling the studio and began the formal selling process by tapping investment banks Morgan Stanley and LionTree LLC.
Variety reported that Amazon has more than 200 million Prime members worldwide currently, and in the past year, 175 million Prime members have streamed Prime Video content.
The deal is the latest in the media industry that’s aimed at boosting streaming services to compete against Netflix and Disney+.
AT&T and Discovery announced last week that they would combine media companies, creating a powerhouse that includes HGTV, CNN, Food Network and HBO.