Antitrust regulators with the European Union plan to decide by March 15 whether they’ll clear Amazon’s proposed purchase of movie studio MGM, Reuters reported Tuesday (Feb. 8).
The deal would allow the eCommerce giant to more readily compete with Netflix and Disney+, and would boost its video streaming service to attract more subscribers to Amazon Prime, which also offers additional features.
The EU competition enforcer has the option of approving the deal with or without remedies, or it could open an investigation if there are serious concerns. Last May, PYMNTS reported that Amazon was looking to buy MGM for $8.45 billion.
See also: Amazon Strikes Deal To Buy Movie Giant MGM For $8.45 Billion
Last year, Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said that “the real financial value behind this deal is the treasure trove” of 4,000 films that is MGM’s catalog of movies. He added in a press release that Amazon would “reimagine and develop” the MGM films.
If Amazon ends up buying MGM, it would be the second biggest deal in Amazon history, second only to its 2017 $13.7 billion acquisition of Whole Foods.
At the time, Kevin Ulrich, chairman of MGM’s board of directors, said he was “very proud” that MGM would be able to continue its storied history, “and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision.”
If the MGM acquisition goes through, Amazon would be able to transition a company forged in the silent movie era into “a streaming era.”
MGM’s valuation was $5.5 billion as of December 2020 before the news came down, but its value soared after that, hitting $105 per share in May.
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