Amazon Closes $8.5 Billion Acquisition of MGM

Amazon Closes $8.5 Billion Acquisition of MGM

Amazon has closed its $8.5 billion acquisition of MGM first announced last May, the companies said Thursday

The completion of the transaction comes two days after the Amazon-MGM deal received clearance from the European Union’s antitrust regulator, which “unconditionally” approved Amazon’s proposed acquisition of MGM, in part because “MGM’s content cannot be considered as must-have.” The European Commission, in its antitrust review, found that the overlaps between the Amazon and MGM businesses are “limited.”

At that time, the deal was still pending approval by the U.S. Federal Trade Commission, which had been given a mid-March deadline by Amazon to issue a decision on approval of the transaction, the Wall Street Journal reported. That meant if the FTC did not file a legal challenge before the deadline, Amazon could move forward with the deal, per the report.

MGM, founded in 1924, will bring Amazon a catalog of more than 4,000 movies and 17,000 TV shows, including James Bond, Pink Panther and Rocky movie franchises. Amazon believes “the real financial value behind this deal is the treasure trove of [intellectual property] in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Mike Hopkins, senior VP of Prime Video and Amazon Studios, said in announcing the deal last year.

MGM’s film catalog includes “12 Angry Men,” “Basic Instinct,” “Creed” and “Rocky,” “Legally Blonde,” “Moonstruck,” “Poltergeist,” “Raging Bull,” “Robocop,” “Silence of the Lambs,” “Stargate,” “Thelma & Louise,” “Tomb Raider,” “The Magnificent Seven,” “The Pink Panther,” “The Thomas Crown Affair” and, of course, the James Bond series. On the TV front, the studio has produced “Fargo,” “The Handmaid’s Tale” and “Vikings.”

More to come…

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