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Amazon Closes $8.45Bln MGM Studio Acquisition

Amazon Closes $8.45Bln MGM Studio Acquisition

Saturday, 19 March, 2022 - 09:00
MGM has a nearly century-long legacy of producing exceptional entertainment. (Reuters) Inc on Thursday said it had closed its $8.5 billion deal to buy Metro-Goldwyn-Mayer (MGM) media company, combining the fabled moviemaker with the online retailing giant as it looks to draw consumers through more streaming video

A press statement said the storied, nearly century-old studio—with more than 4,000 film titles, 17,000 TV episodes, 180 Academy Awards, and 100 Emmy Awards—will complement Prime Video and Amazon Studios’ work in delivering a diverse offering of entertainment choices to customers.

“MGM has a nearly century-long legacy of producing exceptional entertainment, and we share their commitment to delivering a broad slate of original films and television shows to a global audience,” Amazon Studios and Prime Video senior vice president Mike Hopkins said in a statement.

The pact was first announced in May 2021 and has been winding its way through the regulatory process.

The European Commission, which rules on competition issues in the EU, said in a statement Tuesday that the proposed transaction would raise "no competition concerns" and "cleared the case unconditionally."

This is the second-largest acquisition for Amazon after purchasing Whole Foods.

The purchase of the movie and TV studio behind iconic films like the James Bond franchise, Rocky, The Silence of the Lambs and Legally Blonde is just the latest in big-name media and streaming-service mergers.

In August, the Federal Trade Commission received a letter from the Strategic Organizing Center, a democratic union federation representing more than 4 million workers in the Service Employees International Union, the International Brotherhood of Teamsters, the Communications Workers of America and the United Farmworkers.

The group argued at the time that the approval of the deal would help Amazon suppress competition in the streaming market.

FTC noted that the agency has the latitude to file a legal challenge even after the parties have closed a transaction.

“The FTC does not comment on any particular matters. However, we reiterate that the Commission does not approve transactions and may challenge a deal at any time if [the agency] determines that it violates the law,” FTC spokesperson Betsy Lordan stated.

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