Topline

Amazon closed a deal to purchase MGM Wednesday for $8.45 billion—but the acquisition still won’t give Amazon users access to most of the legendary studio’s classic titles like The Wizard of Oz and Singin’ in the Rain, as MGM’s library from 1986 and earlier now belongs to Ted Turner and WarnerMedia.

Key Facts

MGM, one of the leading film studios during Hollywood’s Golden Age, has been around since the silent film era in the 1920s, becoming well-known for Technicolor musicals like An American in Paris and iconic films like Gone with the Wind.

MGM also acquired films from United Artists (UA) when it bought that film studio in 1981.

Media mogul Ted Turner bought MGM in 1985 and then subsequently sold the company’s production and distribution assets in 1986, along with United Artists—but kept control of MGM’s library of all its films from before May 1986, which includes more than 2,000 titles.

In addition to the Golden Age films, that gave Turner control over later classics like Fame and A Christmas Story as well—but not UA movies like the Rocky and James Bond franchises, which would now be part of the potential Amazon deal.

Turner’s library of MGM films are now under the control of WarnerMedia and parent company AT&T, after Turner Broadcasting System merged with Time Warner Inc. in 1995, and a number of the classic films are now streaming on HBO Max.

WarnerMedia division Turner Classic Movies confirmed to Forbes in an email that Turner and WarnerMedia still hold the rights to MGM’s pre-May 1986 catalog, and noted the company also has a deal with MGM giving them control of many UA films through 2022.

Big Number

$1.2 billion. That’s how much Turner ended up paying for MGM’s pre-1986 library, the Los Angeles Times reported in 1986.

Tangent

Amazon will still get more than 4,000 films and 17,000 television shows from MGM as part of the deal, even without the pre-1986 catalog. In addition to the James Bond and Rocky franchises, the studio’s catalog includes films like The Silence of the Lambs and the Pink Panther and Legally Blonde series, as well as television series like The Handmaid’s Tale, The Voice and The Real Housewives of Beverly Hills. The studio’s deals with other distributors could potentially become an issue in the Amazon deal, however. Variety reports that Eon Productions, which has a stake in the Bond films and exerts “unprecedented creative control” over the franchise, could be a thorn in Amazon’s side regarding the distribution of the Bond films and would likely block any new films from being released on Amazon Prime instead of in cinemas.

Key Background

Amazon announced Wednesday that it had closed a deal with MGM following days of reports that the negotiations were nearing an end. Though it won’t be getting access to MGM’s full library from its century-long history, Amazon’s acquisition of MGM is a significant investment in the company’s entertainment division, bolstering its streaming offerings to help Amazon Prime compete with other streaming platforms. The deal will also likely be a boon to MGM, giving the studio more solid financial footing and a massive distribution arm. The studio has faced a series of financial setbacks since its mid century heyday, including declaring bankruptcy in 2010.

Further Reading

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

Amazon Reportedly Close To Buying MGM For Nearly $9 Billion (Forbes)

Amazon Nears Deal to Buy Hollywood Studio MGM (Wall Street Journal)

Amazon Deal to Acquire MGM to Come as Soon as Tuesday (Bloomberg)

Turner Sells Fabled MGM but Keeps a Lion’s Share (Los Angeles Times)