Amazon gains EU approval for $8.45bn MGM acquisition

Amazon.com Inc has secured unconditional approval from the European Commission, under the EU Merger Regulation, for the proposal of the $8.45bn acquisition of MGM Holdings Inc..

MGM is active in the production and distribution of AV content in the EEA and globally. The US-based company also offers a wholesale channel, MGM+, in a number of EEA jurisdictions via retail distributors Prime Video, Zattoo, and Mediaset.

Amazon and MGM announced the merger agreement last year with Amazon aiming to help preserve MGM’s heritage and catalogue of films and provide customers with greater access to these existing works.

According to the European Commission, it was found the transaction would raise no competition concerns in the European Economic Area (EEA).

The deal Includes the production and supply of AV content, the wholesale supply of TV channels, the retail supply of AV services, the production and licensing of distribution rights to third-party distributors of films for theatrical release and the provision of marketplace services.

MGM's catalogue comprises more than 4,000 films, including Creed, James Bond, Legally Blonde, Poltergeist, Robocop, Rocky, Silence of the Lambs, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, alongside 17,000 TV series such as Fargo, The Handmaid’s Tale, and Vikings.

Mike Hopkins, senior vice president of Prime Video and Amazon Studios said: “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. It’s very exciting and provides so many opportunities for high-quality storytelling.”