EU approves Amazon's proposed takeover of movie studio giant MGM

The European Commission said the deal would not pose competition concerns in Europe

MGM has the rights to the James Bond film franchise.

Tue, 15 Mar, 2022 - 20:20

Amazon has gained unconditional EU antitrust approval for its proposed $8.5bn (€7.8bn) acquisition of US movie studio MGM to help it to compete with streaming rivals Netflix and Disney+.

The European Commission said the deal would not pose competition concerns in Europe.

The EU competition enforcer said it had looked into overlaps between the world's largest online retailer and MGM in audio-visual content and found that the combined market shares are low and that they have strong rivals.

"The addition of MGM's content into Amazon's Prime Video offer would not have a significant impact on Amazon's position as provider of marketplace services," the commission said.

EU clearance

Amazon said it was pleased with the EU clearance.

The US Federal Trade Commission has a mid-March deadline to decide on the deal.

Analysts said the deal would boost Amazon's video streaming service and attract people to subscribe to Amazon Prime, which also offers fast shipping and encourages consumers to shop more regularly.

MGM has the rights to James Bond, one of the most lucrative franchises in film history having earned nearly $7bn at the box office globally.

The proliferation of streaming services, including newer arrivals such as HBO Max and Disney+, has put pressure on Amazon to acquire more programming.

Amazon founder Jeff Bezos has made no secret of his desire to get into movies, and MGM’s vast back catalogue provides an abundance of streaming material.