Amazon said it had closed an $8.5 billion (€7.7 billion) acquisition of Metro-Goldwyn-Mayer (MGM) film studios after regulators refused to challenge the deal, strengthening its trade. The company’s biggest takeover in five years.
The end, announced Yesterday, in a statement on the company’s website, marked the latest deal by a US tech giant to win approval despite criticism that the companies have been able to devour smaller firms with less opposition from competition enforcement authorities. European Union regulators signed on to the MGM agreement on Tuesday after finding it did not pose a competition problem.
In the US, the deadline for the Federal Trade Commission (FTC) to challenge the agreement before the deal is closed has passed without the agency taking any action.
The FTC still has the power to sue to block the deal in the future if a majority of the commissioners vote to file a lawsuit.
The committee is currently split between two Republicans and two Democrats, including Chairman Lina Khan, while President Joe Biden’s candidacy for the fifth seat awaits confirmation by the Senate.
Amazon shares were little changed at $3,062.67 at 9:35 a.m. in New York.
In May, Amazon agreed to buy MGM to boost its library of streaming content, one of the perks of membership in the company’s Prime delivery service.
MGM, the studio behind the James Bond franchise, adds a 25,000-hour catalog that Amazon can split between offering Prime Video or free-streaming, ad-supported IMDb TVs.
The takeover is Amazon’s biggest acquisition since it agreed to buy Whole Foods in 2017. for $13.7 billion. In 2020 and 2021 alone, Amazon spent a total of $24 billion on video and music for its streaming services.
In the past, Amazon has acquired smaller startups that it sees as a threat – such as footwear seller Zappos or Quidsi, the parent company of Diapers.com.
Amazon has also attracted potential people in new businesses, such as gaming platforms Twitch or Kiva, making warehouse robots.
Ms. Khan was a fierce critic of Amazon before she was named to the FTC.
https://www.independent.ie/business/world/amazon-closes-deal-to-buy-james-bond-film-studio-mgm-41459468.html Amazon closes deal to buy James Bond movie studio MGM