Amazon’s US$8.5 billion deal to buy MGM might not be decided for several months with the Federal Trade Commission (FTC), Reuters writes.
The FTC stated as of last Friday, July 9, that it would be going ahead with a second request in its review of the merger. This, according to the report, indicates that the agency is likely to take months to come to a ruling.
The FTC is looking into Amazon as part of a number of probes into various Big Tech-related issues.
Amazon announced its intent in May to buy the legendary movie studio, which has been home to films such as the James Bond franchise. The deal would propel Amazon’s library of content to new heights and will allow it to continue competing with fellow giants Netflix, Disney+, and others.
In June, Amazon requested that Lina Khan, the FTC chair, be recused from the hearing, as she’d done research and had previous advocacy records.
PYMNTS has written about Amazon’s intent to buy MGM, reporting that it’s the newest in a series of moves to bolster the non-core part of the business: content for Amazon Prime.
“MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV show programming,” a joint statement said, according to PYMNTS.
MGM’s acquisition, the latest in a string of tie-ups for the company, marks the passing of the company from a silent film-era giant into the streaming age currently dominating things.
Amazon had announced its intent to help archive and preserve the MGM film library, which contains over 4,000 films and 17,000 TV shows. And it’ll also work on making them available for viewing in modern ways. Mike Hopkins, senior VP of Prime Video and Amazon Studios, said “the treasure trove of IP that we plan to reimagine and develop together with MGM’s talented team” will be the most important thing gained in the transaction.
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