Amazon to buy MGM for $8.5 billion

Author: Yao Yongzhe

Amazon has completed its acquisition of MGM Resorts in a deal valued at $8.5 billion, the two companies said on Thursday.

The agreement was disclosed by the capital in May and has been trying to go through regulatory procedures related to the same light. According to Amazon, the acquisition of this legendary studio with more than 4,000 films, 17,000 episodes, 180 Oscars and 100 Emmy Awards will greatly supplement the resources of Prime Video and Amazon Studios to provide users with more diverse choices.

Two days before the transaction was completed, the Amazon-MGM deal was approved by the European Union's antitrust regulator, which "unconditionally" approved Amazon's acquisition of MGM. The committee emphasized that part of the reason for doing so was that "MGM's content cannot be considered essential." In addition, the European Commission found in its antitrust review that the business overlap between Amazon and MGM was "limited."

According to the Wall Street Journal, the deal is still awaiting approval from the Federal Trade Commission. Amazon has set a deadline of mid-March to make a final decision, which means that if the FTC does not raise legal challenges before the deadline, Amazon will move forward with the deal.

As of Thursday morning, the Federal Trade Commission has not publicly questioned or approved the deal. However, a person familiar with the matter told Variety that the FTC has not formally approved the deal and that it is still possible to question the deal. The FTC may raise questions before or after the deal is completed. Amazon declined to comment on the matter.

The two companies have not yet disclosed the leadership composition of the merger. Jennifer Salke is currently the head of Amazon Studios, and industry insiders speculate that she may serve as the head of the merged studio.

With the deal closed, MGM’s management team will join a team led by Mike Hopkins, senior vice president of Prime Video and Amazon Studios, Amazon representatives said. It includes film chief Michael De Luca and television group head Mark Burnett.

“MGM has a nearly century-long heritage of producing exceptional entertainment, and we share their commitment to delivering a broad slate of original films and television shows to audiences around the world,” Hopkins said in a statement. “We welcome the employees, creators and talent of MGM to Prime Video and Amazon Studios, and we look forward to working together to create more opportunities to deliver premium storytelling to our customers.”

Chris Brearton, MGM COO, added: “We are excited to have MGM and its iconic brands, legendary films and TV series, and our incredible team and creative partners join the Prime Video family. MGM has been responsible for the creation of some of the most celebrated and acclaimed films and TV series of the last century. We look forward to continuing that tradition as we enter this next chapter, working with the talented teams at Prime Video and Amazon Studios to deliver the best entertainment to audiences for years to come.”

MGM, founded in 1924, will bring to Amazon a catalog of more than 4,000 films and 17,000 TV shows, including the James Bond, Pink Panther and Rocky film series. Amazon believes that "the real financial value behind this transaction is the treasure trove of [intellectual property] in the deep catalog that we plan to reimagine and develop with the talented team at MGM," Hopkins said when the deal was announced last year.

MGM's stellar film oeuvre includes 12 Angry Men, Basic Instinct, Creed, and Rocky, Legally Blonde, Moonlight, Poltergeist, Raging Bull, Robocop, The Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and of course the James Bond series. On the television side, the studio produced Fargo, The Handmaid's Tale, and Vikings.