Mar 17, 2022 - Technology

Amazon closes MGM deal

Illustration of Amazon "A" made from film negatives.
Illustration: Rae Cook/Axios

Amazon closed its $8.45 billion deal with Hollywood studio MGM on Thursday, after the deadline for a lawsuit from U.S. regulators expired.

Why it matters: The merger will give Amazon — and Prime customers — access to MGM's content, including the James Bond franchise.

What they're saying: Amazon said in a blog post all MGM employees will join the company, which will be part of Prime Video and Amazon Studios.

Between the lines: Amazon moved forward with closing the deal after the deadline for the Federal Trade Commission to challenge the merger expired.

  • The FTC is led by Amazon-critic Lina Khan, but currently deadlocked at two Democrats and two Republicans, so it's unclear she had the votes to sue.
  • The European Commission signed off on the acquisition earlier this week, saying it would not reduce competition.

The intrigue: An FTC spokesperson raised the prospect of an eventual challenge from the agency in a statement.

  • "The FTC does not comment on any particular matters," the spokesperson said in a statement. "However, we reiterate that the Commission does not approve transactions and may challenge a deal at any time if it determines that it violates the law."
  • The FTC announced last summer it would send letters warning that deal consummation occurs at companies' own risk if the agency cannot fully investigate within its deadlines.
  • The FTC and Amazon declined comment on whether there was such a letter in this case.

Editor's note: This story has been updated to include comment from the FTC.

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