Amazon Bid for MGM to Get FTC Antitrust Review

Amazon’s $8.5 billion deal to acquire MGM will be subject to an antitrust review by the Federal Trade Commission, the Wall Street Journal reported, citing anonymous sources

Last month, Amazon announced a definitive agreement to acquire MGM and its well-stocked library of 4,000 movies and 17,000 TV shows, including the storied James Bond film franchise.

The FTC and the Justice Department share oversight of reviewing the antitrust implications of significant proposed mergers and acquisitions. The FTC recently got the green light after a recent meeting with the DOJ to review the Amazon-MGM deal, given that the FTC currently is leading a broader antitrust probe into Amazon’s business, per the WSJ report.

Amazon declined to comment on the Journal report. An FTC spokeswoman said the agency “does not confirm the existence of investigations, and we have no further comment on this.”

Word that the FTC will be heading up the review of Amazon-MGM comes after Lina Khan — an outspoken critic of big tech companies, including Amazon — was sworn in as the agency’s chair on June 15. President Biden appointed Khan, a Democrat, as an FTC commissioner in March, and last week he named her to head the agency.

Amazon hasn’t said when it expects the MGM deal to close. The ecommerce giant is expecting to mine MGM properties like the James Bond, Pink Panther and Rocky franchises for new originals to feed into the global Prime Video service. If it clears regulatory hurdles, the MGM deal would be Amazon’s second-largest acquisition, behind its $13.7 billion purchase of Whole Foods in 2017.

With respect to antitrust concerns, Amazon’s position has been that competition in the entertainment industry is already intense — and particularly so in the streaming space — and that by bringing MGM into the Amazon fold it can provide more choice for consumers.

It’s also worth noting that MGM is one of the smallest of Hollywood’s established studios with approximately 1% of the total 2020 box office gross in North America, compared to approximately 80% for the top five distributors: Sony Pictures, Universal, Warner Brothers, Walt Disney/20th Century Fox/20th Century Studios and Paramount Pictures.

In addition, Amazon’s $8.45 billion price tag is much smaller than other recent acquisitions in the entertainment industry that have cleared regulatory review. That includes Disney’s merger with Fox Entertainment in 2019, valued at $71 billion, and AT&T’s $85 billion acquisition of Time Warner (which the DOJ tried — and failed — to block in court).

Tobi❤

Tobi is a reserved individual, loves making friends and a top-notch web developer. Currently, he's working as a freelancer for cmatrends.com

Leave a Comment on CmaTrends

Next Post

Human Rights Group Rescue 14-year-old Girl Who Was Allegedly Assaulted By Her Step Father And Step Brother For Resisting Rape In Akwa Ibom

Tue Jun 22 , 2021
A 14-year-old girl identified as Salome Uwem has been rescued by a human rights group after it was alleged that her stepfather and stepbrother physically assaulted her for resisting their rape attempt in Akwa Ibom. The group, Centre for Basic Rights Protection and Accountability Campaign, in a statement on Tuesday, […]