Amazon to buy MGM Studios for $8.45 billion
Amazon will acquire MGM Studios for $8.45 billion, the e-commerce giant announced Wednesday.
The deal for the entertainment studio is the second largest in Amazon’s history behind its $13.7 billion acquisition of Whole Foods in 2017.
It is a sign of Amazon’s ambitions in the streaming market and will boost its Prime Video offerings.
“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said in a statement. “It’s very exciting and provides so many opportunities for high-quality storytelling.”
Amazon has already produced award winning film and television programs, including “Manchester by the Sea” and “The Marvelous Mrs. Maisel.”
The Seattle-based company has also made moves in sports content like signing a deal to broadcast “Thursday Night Football” starting in 2022.
The acquisition could heighten existing antitrust scrutiny on Amazon.
Senate antitrust subcommittee chair Amy Klobuchar (D-Minn.) on Wednesday called on regulators to conduct a “thorough investigation” into the proposed acquisition “to ensure that this deal won’t risk harming competition.”
“This is also a reminder of why we need to fund our antitrust agencies so they can take on investigations of multi-billion dollar deals,” she continued in a statement. “Our government cannot ensure major corporations are playing by the rules if enforcement agencies are chronically underfunded.”
The Washington, D.C.’s, attorney general filed a lawsuit against Amazon over its treatment of third-party sellers on Tuesday.
The House Judiciary antitrust subcommittee also released a report last year that accused Amazon of exerting monopoly power in digital marketplaces. Lawmakers have pledged to introduce more legislation to revamp antitrust laws to empower regulators.
Updated 3:32 p.m.