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Amazon Acquires MGM Movie Studio In $8.5B Deal

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Amazon just acquired MGM movie studio in a record $8.5B deal.

The film studio founded in 1924, will bring Amazon a catalog of more than 4,000 movies and 17,000 tv shows.

Big films include the James Bond and Rocky movie franchises.

The bold move looks to improve the company’s position in the streaming services sector by adding even more content to its already extensive library.

“MGM has a nearly century-long legacy of producing exceptional entertainment, and we share their commitment to delivering a broad slate of original films and television shows to a global audience,” Mike Hopkins, SVP of Prime Video and Amazon Studios, said in a statement.

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The deal, which was first announced last May, received clearance from the European Union’s antitrust regulator two days ago.

Amazon says the nearly century-old studio will complement Prime Video and Amazon Studios’ content and that together, the two will create more quality entertainment options for subscribers.

Are streaming services affecting movie theatres?

Not at all.

AMC Entertainment reported during their Q4 earnings call more attendees visited the movie theatre chain each quarter of 2021.

The world’s largest movie theatre chain seated more than 60 million guests in Q4 of 2021 alone.

While online streaming services are convenient, pandemic restrictions have pushed people to want to go out and experience normalcy again.

The movie theatre experience cannot be replicated at home.

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People will still wait in line for the showing of their favorite film in anticipation.

Because ultimately, it’s an experience people want over the convenience.

AMC Theatres: The most anticipated movies coming in 2022

Antitrust Laws Amazon
Antitrust laws Amazon – Amazon MGM acquisition

Unions pressured FTC to reject the Amazon-MGM acquisition

However, not everyone is particularly excited about the news.

“The prospect of Amazon acquiring a trove of additional MGM content to build on Amazon’s existing vast library should raise alarm bells,” the group said.

The deal closed despite pushback from several labor groups, which asked the FTC to block the transaction – arguing it would stifle competition in the streaming market.

This $8.45 billion transaction is the second-largest acquisition in Amazon’s history, trailing only its $13.7 billion deal to buy grocery chain Whole Foods in 2017.

Amazon acquiring MGM expands its content pool during a period of intense competition for viewership.

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The FTC could intervene in the future if Amazon violates anti-trust laws.

Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition.

What are your thoughts on Amazon acquiring MGM?

Leave your thoughts in the comment section below and don’t forget to subscribe for more news.

AMC Theatres: The most anticipated movies coming in 2022

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