Amazon Closes $8.5-Billion Deal to Acquire Hollywood Studio MGM

MGM has been through bankruptcy and new sets of owners in the past decade while its new releases dwindled.

By Associated Press | Updated: 18 March 2022 16:23 IST

Amazon Closes $8.5-Billion Deal to Acquire Hollywood Studio MGM

The latest acquisition was aimed at boosting Amazon Prime to compete against Netflix and Disney+

Highlights

This merger will allow Amazon to use the 4,000 film titles owned by MGM
MGM is one of the oldest studios in Hollywood
Amazon acquire Whole Foods for $13.7 billion in 2017

Amazon announced Thursday it has closed its acquisition of Hollywood studio MGM, two days after European regulators said the deal “would not significantly reduce competition” in European markets.

The retail giant had announced the $8.5 billion (roughly Rs. 64,719 crore) deal in May, making it the company's second-largest acquisition following its $13.7 billion (roughly Rs. 104311.8 crore) deal with Whole Foods in 2017. The latest acquisition was aimed at boosting Amazon's streaming services to compete against Netflix and Disney+.

The Wall Street Journal reported earlier this month Amazon certified to the Federal Trade Commission it provided information sought by antitrust investigators regarding the deal, adding it could be free to close the purchase if the commission doesn't file a legal challenge before a mid-March deadline.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

One of the oldest studios in Hollywood, MGM has been through bankruptcy and new sets of owners in the past decade while its new releases dwindled.

Amazon praised the deal in a blog post Thursday, saying MGM has more than 4,000 film titles, 17,000 TV episodes and awards that “will complement Prime Video and Amazon Studios' work in delivering a diverse offering of entertainment choices to customers.”

Amazon plans to draw on the vast MGM library, with famous characters such as Rocky, RoboCop and Pink Panther, to create new movies and shows.

Prime Video India Reveals Dune OTT Release Date

“We are excited for MGM and its bounty of iconic brands, legendary films and television series, and our incredible team and creative partners to join the Prime Video family,” MGM's Chief Operating Officer Chris Brearton said in a statement.

The latest acquisition comes as antitrust regulators scrutinize Amazon for its broader practices and operations. Last week, House lawmakers asked the Justice Department to investigate whether the tech giant and senior executives obstructed Congress or violated other federal laws in testimony on its competition practices.

© Thomson Reuters 2022

This week on Orbital, the Gadgets 360 podcast, we dive into Apple's Peek Performance event. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.