Amazon Set To Acquire Famous MGM in $8.5 Billion Deal

Plans have been concluded for the world’s largest online retailer, Amazon.com Inc to buy MGM, which is the fabled studio behind “Rocky” and “James Bond” as the mid-March deadline for regulators to challenge the online retailer’s merger plan has approached.

The move, which is expected to ramp up competition with streaming rivals, Netflix and Disney+, would reportedly strengthen Amazon’s video streaming service as people would be tantalised to subscribe to its Prime fast-shipping and streaming club.

Great as this may sound, it is, however, unclear exactly when the internet giant might close the deal since the US Federal Trade Commission (FTC) is yet to officially determine whether MGM merger violates the antitrust law.

Amazon had in May 2021, announced the merger and acquisition deal, explaining that it offered a trove of content for the company to develop and draw more patronage to its business offerings.

But the FTC butted in, requesting that the online retailer substantially allow the Antitrust agencies in the United States and Europe to do their job, first. They, reportedly, needed to decide if Amazon’s proposed US$8.5 billion deal for MGM broke antitrust law.

Prime Business Africa reports that the US and EU antitrust agencies have approached their own mid-March deadline for making a decision on whether the deal violates antitrust law or not.  While the EU is set to clear the planned acquisition without conditions today, March 15, 2022, the US FTC is yet to give it a nod.

It will be recalled that the FTC Chair, Lina Khan, gained internet fame with a law review article entitled, “Amazon’s Antitrust Paradox,” during former President Donald Trump administration. This reportedly, ended up, opening a broader antitrust probe on Amazon and other big tech platforms like Facebook and Google.