Amazon finalizes deal to acquire MGM
Tech giant will use the film and TV studio's content to boost its Prime Video streaming platform

Amazon.com Inc. completed its $6.5 billion acquisition of film and television studio MGM on Thursday, despite continued scrutiny by the Federal Trade Commission (FTC).
The move came after Amazon certified to the FTC that it had provided all the information requested by antitrust authorities to review the transaction. The move has placed the deal with the agency on a regulatory deadline, which has now expired, leaving the company free to move forward, said a person familiar with the matter.
Amazon has provided the FTC with more than three million documents over the past eight months as part of the review process, according to the person familiar with the matter.
Even if the deadline has passed, the Commission would still have the option to later challenge the acquisition if a majority of the FTC votes in favour. The five-member commission is currently split 2-2 between Democrats and Republicans, with one vacancy. A candidate for the open seat nominated by President Biden is still pending in the Senate.
Amazon did not comment on the FTC's review in its announcement of the closing of the deal.
The FTC's investigation has been closely monitored as commission chairwoman Lina Khan has long been a vocal critic of Amazon. In 2017, while still a law student at Yale, Lina Khan published an academic article raising concerns about Amazon's market power and arguing that the government had failed to control the company. Ms. Khan later worked as legal counsel for a Congressional antitrust subcommittee that led a 16-month investigation into four tech companies, including Amazon.
Last summer, Amazon requested that Ms Khan withdraw from antitrust investigations into the company. The FTC has not commented on this request.
European regulators approved the acquisition earlier this week, arguing that the transaction would not significantly restrict competition.
This is Amazon's second-largest acquisition in its history, following its 2017 purchase of Whole Foods for $13.7 billion.
The closing of the transaction comes at a time when the technology company remains under intense antitrust scrutiny due to its size and power in a number of different industries. In addition to reviewing the merger, the FTC is also scrutinizing Amazon's operations.
Last week, a US Congressional committee asked the Justice Department to investigate Amazon and some of its executives over what lawmakers say is a potentially criminal obstruction of Congress in connection with the committee's investigation into Amazon's influence.
MGM will be part of Amazon's Prime Video and Studios unit and will be led by Senior Vice President Mike Hopkins. Amazon hasn't announced any additional governance structures for the studio's operations. Amazon said it has no plans to lay off the studio.
With MGM, Amazon will add 4,000 films to its inventory, including the iconic James Bond series. MGM also has an extensive library of 17,000 episodes of television content. Amazon is investing heavily in expanding its Prime Video platform, which competes with Netflix Inc., NFLX 3.88% Walt Disney Co. DIS 0.96%'s Disney+ and other major rivals.
"MGM has a nearly century-old heritage of producing exceptional entertainment, and we share their commitment to bringing a diverse array of original films and television shows to a global audience," Hopkins said in a statement.
Entertainment isn't the only area where Amazon is expanding its video presence. The company invests heavily in sport. Last year, the company inked a deal with the National Football League for the exclusive national video rights to Thursday Night Football at a cost of about $1 billion per season, according to people familiar with the matter.
Amazon is close to a deal with legendary host Al Michaels to host Thursday's football broadcasts, according to people close to the host and the company.
Amazon is also pursuing the NFL's "Sunday Ticket" rights, a TV package that gives subscribers access to every game during the regular season, according to people close to the league and the company. Satellite broadcaster DirecTV is the current rights holder and its contract will expire after the 2022-23 season.





