A PYMNTS Company

EU Set To Approve Amazon’s $8.5B MGM Buy

 |  March 9, 2022

Amazon is expected to win unconditional EU antitrust approval for its $8.5 billion buy of US movie studio MGM, a move that is set to ramp up competition with streaming rivals Netflix and Disney+, reported Reuters.

Announced in May last year, the deal would also strengthen Amazon’s video streaming service, drawing people to subscribe to Amazon Prime, which offers fast shipping and encourages consumers to shop more regularly.

Related: FTC Gears Up For Potential Challenge To Amazon’s $8.5B MGM Takeover

The MGM acquisition would give the world’s largest online retailer rights to James Bond, one of the most lucrative franchises in film history that’s earned nearly $7 billion at the box office globally, according to MGM.

MGM also licences content for video games, which could benefit Amazon’s development efforts in that area.

Amazon, which has been the focus of a long-running investigation into the company’s business practices, as well as a probe into the MGM deal, could fall into that category. The FTC could also file suit, at which point the merger outcome would be determined by antitrust litigation that could go on for months or years.

Amazon’s purchase of MGM has drawn opposition from both politicians and labor organizations, concerned that the acquisition of a major film studio will increase Amazon’s ability to leverage its power in the Streaming Video-On-Demand market, possibly harming consumers, rival competitors, and film industry workers.