Amazon Closes $6.5 Billion Acquisition Deal with MGM

Share Us

1424
Amazon Closes $6.5 Billion Acquisition Deal with MGM
19 Mar 2022
6 min read

News Synopsis

Amazon has closed its $6.5 billion acquisition deal with MGM movie and television studio, even when the Federal Trade Commission is still examining the details of the deal.

This move will take place after Amazon has proved to the FTC that it has provided all the information requested by antitrust investigators to review the transaction. The move puts the deal in regulatory oversight with agents that are currently out of date leaving the company free to move forward, said a person familiar with the matter.

Even if the deadline has passed, the Commission can later challenge the acquisition of a majority of the FTC's vote in favour. The five-member committee is now divided into Democrats and Republicans, leaving one spot open. President Biden’s nominee for the open seat is still pending in the senate.

European regulators approved the deal this week, saying that the transaction would not significantly reduce the competition. The deal also marks Amazon’s second-largest acquisition in its history, after its 2017 deal, when it bought Whole Foods for $13.7 billion. 

Amazon will use MGM to add 4,000 movies to its inventory, including the legendary James Bond franchise. MGM also has a rich library of 17,000 episodes of television content. Amazon is investing heavily in expanding the Prime Video platform, which competes with Netflix Inc, Disney +, and other major rivals.

Amazon is not increasing its video presence in the entertainment only. It is also investing heavily in sports. The company signed a deal with the National Football League for exclusive national video rights to Thursday Night Football at a price of around $1 billion per session.