Amazon Closes $8.45Bln MGM Studio Acquisition

MGM has a nearly century-long legacy of producing exceptional entertainment. (Reuters)
MGM has a nearly century-long legacy of producing exceptional entertainment. (Reuters)
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Amazon Closes $8.45Bln MGM Studio Acquisition

MGM has a nearly century-long legacy of producing exceptional entertainment. (Reuters)
MGM has a nearly century-long legacy of producing exceptional entertainment. (Reuters)

Amazon.com 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.



Gold Gains on Safe-haven Demand as Trump Expands Trade War

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Gains on Safe-haven Demand as Trump Expands Trade War

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices rose for a third straight session on Friday, as US President Donald Trump's announcement of new tariffs on Canada and broader tariff threats against other trading partners lifted demand for the safe-haven asset.
Spot gold was up 0.5% to $3,339.99 per ounce, as of 0755 GMT. US gold futures gained 0.8% to $3,351.
"We're seeing some growing demand for gold as a haven. There are investors looking for some safety asset despite stock markets hitting highs. And any dip in gold is seen as a buying opportunity now," said Carlo Alberto De Casa, an external analyst at Swissquote.
On Thursday, Trump said US would impose a 35% tariff on imports from Canada and planned to impose blanket duties of 15% or 20% on most other trade partners, Reuters said.
This follows Wednesday's announcement of a 50% tariff on US copper imports and a similar levy on goods from Brazil, along with tariff notifications sent earlier to other trading partners.
Trump also said the European Union could receive a letter on tariff rates by Friday, throwing into question the progress of trade talks between Washington and the 27-nation bloc.
"Rising trade tensions have reinvigorated demand for haven assets such as gold amid the prospect of an economic slowdown. The more dovish Fed is also boosting investor appetite," analysts at ANZ wrote in a note.
Data on Thursday showed weekly jobless claims in the US fell unexpectedly to a seven-week low, indicating stable employment levels.
Federal Reserve Governor Christopher Waller on Thursday reiterated his belief the central bank could cut interest rates at its policy meeting later this month.
Meanwhile, Fed Bank of San Francisco President Mary Daly said two rate cuts remain on the table for this year.
Lower rates boost non-yielding gold's appeal.
Elsewhere, spot silver rose 0.9% to $37.37 per ounce, platinum fell 1% to $1,346.81 and palladium climbed 1.3% to $1,156.44.