The deal has some observers concerned that a few media companies are getting too big.
Metro-Goldwyn-Mayer, known as MGM, started making movies in 1924, before films had sound. The movie production company created well-known movies that include Gone With the Wind and The Wizard of Oz. But it no longer owns the rights to those films.
MGM also shares ownership of the James Bond action movies. The release of the latest film in the series, No Time to Die, has been delayed by the coronavirus health crisis.
In addition to films, MGM also produces television shows including Shark Tank and The Real Housewives of Beverly Hills.
The movie studio has been for sale for a number of years and sought legal protection from its creditors in 2010 after having financial problems.
Observers say Amazon is trying to compete with other large media and entertainment companies like Netflix and Disney.
Earlier this month, AT&T and Discovery, owner of the Discovery Channel, said they would seek to form a new company that includes CNN, the Food Network and HBO.
Amazon already has its own movie studio. But it is looking for more movies and shows to offer its Amazon Prime subscribers through online streaming.
Some successful Amazon television shows and movies include The Marvelous Mrs. Maisel, Fleabag and The Sound of Metal, which recently won Academy Awards.
Amazon is also developing a television version of the Lord of the Rings movies and books.
However, the U.S. and other governments are concerned some media companies are getting too big and pushing out competitors. A report from the U.S. House of Representatives last year suggested that Amazon and other large, influential companies should be broken up.
I'm Dan Friedell.