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Amazon has closed its $8.45 billion acquisition of Metro-Goldwyn-Mayer Studios because it seems to spice up its streaming service choices to compete with leisure rivals Netflix and Disney.
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The transfer will enable Amazon to leverage MGM’s catalog of greater than 4,000 movie titles and 17,000 TV episodes, together with franchise favorites comparable to “James Bond,” “Rocky” and “Creed,” and classics comparable to “Thelma & Louise,” “The Silence of the Lambs,” “The Magnificent Seven” and “Raging Bull.”
This picture launched by Metro Goldwyn Mayer Photos reveals Daniel Craig and Ana de Armas in a scene from “No Time To Die.” (Nicola Dove/Metro Goldwyn Mayer Photos through AP / AP Newsroom)
“MGM has a virtually century-long legacy of manufacturing distinctive leisure, and we share their dedication to delivering a broad slate of authentic movies and tv reveals to a worldwide viewers,” Amazon Studios and Prime Video senior vp Mike Hopkins stated in an announcement.
“We welcome MGM staff, creators, and expertise to Prime Video and Amazon Studios, and we sit up for working collectively to create much more alternatives to ship high quality storytelling to our prospects.”
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The deal, which was first introduced in Might 2021, closed with out being challenged by the Federal Commerce Fee.
Amazon’s $8.45 billion acquisition of MGM closed with out problem from the Federal Commerce Fee. (PAUL J. RICHARDS/AFP through Getty Photos / Getty Photos)
In August, the FTC acquired a letter from the Strategic Organizing Heart, a democratic union federation representing greater than 4 million staff within the Service Workers Worldwide Union, the Worldwide Brotherhood of Teamsters, the Communications Staff of America and the United Farmworkers. The group argued on the time that the approval of the deal would assist Amazon suppress competitors within the streaming market.
“Amazon has a well-documented historical past of leveraging its dominance in e-commerce to achieve market share in vertically-adjacent markets utilizing a spread of unfair and anticompetitive practices,” the group wrote.
“Amazon’s present practices in SVOD and associated markets – together with leveraging e-commerce energy to construct SVOD market share, providing Prime video at under market costs, and exclusionary use of its dominance within the streaming system and cloud computing markets – already increase critical questions of anti-competitive conduct within the particular market that may be affected by the merger.”
The Wall Avenue Journal lately reported that Amazon “licensed to the FTC that it had supplied all the knowledge requested by antitrust investigators.” The FTC had till mid-March to file any authorized problem to the deal previous to its closing.
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Whereas the FTC declined to remark particularly on the MGM acquisition, spokesperson Lindsay Kryzak advised Wholesome Residing Workforce that the company might problem a deal at any time whether it is decided to violate the regulation. Over the summer season, the FTC introduced plans to ship pre-consummation warning letters in reference to offers it can not totally examine throughout the timelines established by the Hartt-Scott-Rodino Act.
“These letters alert merging events that their transactions stay beneath investigation, and warn that consummation happens at their very own threat,” Kryzak stated.
Along with the FTC, the Amazon-MGM deal needed to be accredited by the European Union’s antitrust fee, who concluded this week that the transaction would increase “no competitors considerations within the European Financial Space.”
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Amazon, which doesn’t disclose its whole Prime Video subscriber numbers, prices $8.99 monthly for a stand-alone Prime Video membership. Prime Video can be included with free two-day delivery in the usual Amazon Prime plan for $14.99 monthly or $139 per 12 months. Amazon Prime memberships are additionally out there for college kids for $7.49 monthly or $69 per 12 months and EBT, Medicaid and different choose authorities help recipients for $6.99 monthly.
In its first quarter earnings report for 2021, Amazon stated over 175 million of its 200 million paid Prime members worldwide had streamed reveals and flicks up to now 12 months.
The $8.45 billion MGM transaction is the second-largest acquisition in Amazon’s historical past, following carefully behind the corporate’s $13.7 billion acquisition of grocery chain Complete Meals in 2017.