Amazon wins EU approval to buy MGM for $$8.45bn

Green light from competition regulators leaves US FTC as final obstacle for mammoth purchase

Amazon.com Inc (NASDAQ:AMZN) was given the greenlight from EU regulators for its US$8.45bn acquisition of movie studio giant MGM with antitrust regulators saying there were no competition concerns.

"The Commission found that MGM's upstream activities as a producer and licensor of AV content are limited compared to other market players' activities," a statement from the European Commission said. "MGM's content cannot be considered as must-have; and a wide variety of alternative content exists."

The studio behind James Bond and Creed is expected to add to Amazon’s streaming offering through both historic titles and original features, as the streaming arms race proliferates.

“The real financial value behind this deal is the treasure trove of [intellectual property] in the deep catalogue that we plan to reimagine and develop together with MGM’s talented team,” Mike Hopkins, senior VP of Prime Video and Amazon Studios, said in announcing the deal last year.

But completion of the purchase still rests on US regulators, with the Federal Trade Commission required to sign off on any deal for MGM.

Shares in Amazon were up 3.89% to US$2,947.33 by close yesterday.

EU regulators clear Amazon's $8.45 billion purchase of MGM

LONDON (AP) — European regulators on Tuesday cleared Amazon's purchase of Hollywood studio MGM, saying the deal doesn't raise any competition concerns.

The online shopping giant said last year that it was buying MGM in a $8.45 billion deal aimed at bulking up its video streaming service with more content to watch.

The European Commission said its investigation found the deal “would not significantly reduce competition" in European markets, including for movie and TV production, wholesale supply of TV channels and retail supply of “audiovisual services."

The commission, the European Union's executive arm, and its top competition watchdog said MGM's content can't be considered “must-have" and it's “not among the top production studios,” despite holding the rights to successful franchises including James Bond.

Known for its roaring lion logo, MGM is one of the oldest studios in Hollywood but its star has faded considerably over the years.

It still has a vast library, with famous characters such as Rocky, RoboCop and Pink Panther, which Amazon has said it would use to create new movies and shows.