In the last decade, MGM has gone through bankruptcy and had new owners, while its new releases have plummeted.
Two days after European regulators ruled the deal “would not significantly limit competition” in European markets, Amazon said Thursday that it had completed its acquisition of Hollywood studio MGM.
Amazon Closed a Deal of $8.5 billion with MGM Studio
The $8.5 billion (approximately Rs. 64,719 crores) agreement was announced in May, making it the retail behemoth’s second-largest acquisition after the $13.7 billion (about Rs. 104311.8 crores) deal with Whole Foods in 2017. Amazon’s recent acquisition was made to strengthen its streaming services in order to compete with Netflix and Disney+.
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According to the Wall Street Journal, Amazon certified to the Federal Trade Commission earlier this month that it gave antitrust investigators information on the merger, and that it may be free to finalize the deal if the commission does not file a legal challenge before a mid-March deadline.
MGM, one of Hollywood’s oldest studios, has gone through bankruptcy and new owners in the last decade, with fewer new releases.
MGM has more than 4,000 film titles, 17,000 TV episodes, and awards, according to Amazon, which “will complement Prime Video and Amazon Studios’ work in delivering a diverse array of entertainment choices to customers.”
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Why Amazon Purchased MGM Studio?
Amazon intends to create new movies and shows based on the massive MGM library, which includes well-known characters such as Rocky, RoboCop, and Pink Panther.
MGM’s Chief Operating Officer Chris Brearton said in a statement, “We are excited for MGM and its bounty of famous brands, legendary films, and television programs, as well as our outstanding team and creative partners to join the Prime Video family.”
Antitrust investigators are scrutinizing Amazon’s broader tactics and operations as a result of this recent acquisition. Last week, House legislators asked the Justice Department to look into whether the tech behemoth and its top executives obstructed Congress or broke other federal crimes during questioning about the company’s competition policies.