Here’s how Amazon with Mgm will challenge Netflix and Disney Plus
Amazon has closed the deal for the purchase of MGM studies for 8.5 billion dollars. The acquisition marks a significant investment in Amazon's entertainment division that will compete in video streaming with rivals from the likes of Netflix and Disney Plus
Amazon's Prime Video streaming service will field James Bond, Rocky and over 4,000 films from the MGM catalog in the battle of streaming.
Today, the tech giant Amazon closed the acquisition of MGM, the parent company of Metro Goldwyn Mayer film studios.
This was announced by a press release from the e-commerce giant. In fact, the review period of the agreement by the Federal Trade Commission (Ftc), the American government agency that deals with the prevention of anticompetitive commercial practices, has expired . The FTC had nothing to complain about the operation even if it could always challenge it in the future. At the beginning of the week, the operation also received the green light from the EU Antitrust. The European Commission, in its antitrust review, found that the overlaps between the activities of Amazon and MGM are "limited".
Last May, Amazon announced the acquisition of the famous and ancient Hollywood studios for 8.45 billion dollars.
The deal with MGM marks the second largest acquisition in Amazon's history, following the 2017 deal to purchase Whole Foods for $ 13.7 billion.
Additionally, the acquisition marks a significant investment in Amazon's entertainment business. In this way, the Seattle giant tries to compete with streaming rivals such as Netflix and Disney Plus.
All the details.
CLEARANCE FROM THE FTC
Amazon's $ 8.45 billion purchase of MGM is complete, with no public response from the FTC as to whether or not it will contest the deal. Since the FTC did not file a legal dispute before the deadline, Amazon was able to proceed with the deal. The tech giant has provided over 3 million documents in the past eight months to the review committee.
THE OK OF THE EU ANTITRUST
In the meantime, the green light of the European antitrust arrived on Tuesday. Brussels concluded that the transaction would not pose any competition problems in the European Economic Area, with particular reference to the markets for the production and supply of audiovisual content.
According to the European Commission, MGM, which owns the James Bond franchise, has no "unmissable" content. “Even in domestic markets where Amazon has a sizeable market presence among video streaming platforms, the commission found that Amazon faces stiff competition from other players,” the commission said.
THE OPERATION
Therefore, Amazon today announced the completion of the transaction.
The company led by Andy Jassy has made it known that all MGM employees will join the company.
THE STRATEGY FOR FIRST VIDEOS
So Mgm will be part of Amazon's Prime Video and Studios unit, which will own 4,000 films, including the James Bond brand and a video library of over 17,000 episodes of television content.
In addition to James Bond, MGM counts the e Rocky franchises, films such as The Silence of the Lambs and the Pink Panther and the Legally Blonde series and television series including The Handmaid's Tale, The Voice and The Real Housewives of Beverly Hills.
THE VIDEO STREAMING MARKET IS STOPPED
This news comes as other media giants are trying to shake things up in the streaming industry,The Verge points out.
“Last year, AT&T announced it is merging WarnerMedia with Discovery in a move that includes shows from major networks including HBO, CNN, Cartoon Network, HGTV, TLC, Food Network and more. The merger was just approved by the US government in February and, as a result, HBO Max and Discovery Plus will be combined into one app. "
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/ecco-come-amazon-con-mgm-sfidera-netflix-e-disney-plus/ on Thu, 17 Mar 2022 15:18:18 +0000.