At the end of May last year, Amazon announced it was buying MGM for $8.5 billion. According to the tech group, the nearly 100-year-old MGM could play an important role in the high demand for streaming content. The web store group already has its own video streaming service with Prime Video.
MGM, which is owned by hedge funds, has a large catalog of blockbusters, such as the James Bond and Rocky film series. The television series ‘The Handmaid’s Tale’ and ‘Fargo’ are also owned by MGM. The catalog has about 4,000 film titles and 17,000 TV shows.
In the United States, where the takeover is more controversial, Amazon has not yet received approval. The Federal Trade Commission (FTC) is expected to make a decision on the acquisition this month.
There is a lot of focus on the takeovers of smaller companies by large tech groups, especially if they eliminate potential competition or enter new markets as a result. In recent years, there has been a lot of talk about the power that companies such as Amazon, Google parent Alphabet, Apple and Meta Platforms have. The latter company is the parent company of Facebook, Instagram and WhatsApp.