It's tempting to suggest the deal is largely about MGM's catalogue of films and TV shows.

“MGM has a vast catalog with more than 4,000 films – 12 Angry Men, Basic Instinct, Creed, James Bond, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and many other icons – as well as 17,000 TV shows – including Fargo, The Handmaid’s Tale, and Vikings – that have collectively won more than 180 Academy Awards and 100 Emmys,” said Prime Video and Amazon Studios senior vice president Mike Hopkins.

The trouble is that much of this content is already tied up in licensing deals with other players. But such deals are very rarely open-ended, and the shows and movies will eventually become available to be added to the Prime Video or IMDb TV (currently only available in the US) lineup.

But the company is also looking to the future.

“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,” added Hoplins

This suggests that in the medium term Prime Video subscribers and IMDb TV viewers might be able to look forward to spin-offs, remakes or reboots of various MGM properties, and those could take the form of movie-length productions or series.

Industry observers have pointed out that Amazon hasn't achieved much success in the unscripted/reality genre, the main exception being The Grand Tour (which came about when its three presenters left the BBC's hit show Top Gear). MGM has a strong record thanks to shows such as The Voice, Shark Tank, Survivor, and The Real Housewives of Beverly Hills.

The acquisition does mean that – at least in the short term – Amazon will move into the new territory of producing content for competing streaming services and other third parties, thanks to existing MGM contracts.

MGM board chairman Kevin Ulrich said “It has been an honour to have been a part of the incredible transformation of Metro Goldwyn Mayer. To get here took immensely talented people with a true belief in one vision. On behalf of the Board, I would like to thank the MGM team who have helped us arrive at this historic day.”

“I am very proud that MGM’s lion, which has long evoked the golden age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”

The transaction is subject to regulatory approvals and other customary closing conditions.

Some members of the US Congress from both sides of politics have expressed concern about Amazon's further expansion through acquisition, but experts say the country's antitrust legislation does not apply to situations like this.

However, Republican Senator Josh Hawley last month introduced the Bust Up Big Tech Act, which would (among other things) "ban major companies in the business of offering search engines, marketplaces, and exchanges from expanding their power and creating anticompetitive conflicts of interest by providing the online hosting and internet infrastructure services for third parties", and the Trust-Busting for the Twenty-First Century Act that would (among other things) "ban all mergers and acquisitions by companies with market capitalisation exceeding $100 billion".