Image Source: Visual China

BEIJING, March 17 (TMTPOST) — Multinational e-commerce giant Amazon announced on Thursday that the US$8.5 billion acquisition deal of MGM Studios has been completed.

“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, Senior Vice President at Amazon Studios and Amazon Prime Video said in a statement. Amazon Prime Video and Amazon Studios welcome professional talents and creators from MGM Studios and hope to create high-quality content together, Hopkins said.

Amazon received approval from the antitrust authorities in the European Union to proceed with the acquisition deal. It is reported that the European Commission gave green light to the deal with no additional condition attached. The European Commission said it found limited overlapping businesses between Amazon and MGM Studios. However, Amazon remains under intense antitrust scrutiny because of its size and influence in a number of industries.

Amazon announced that it would acquire MGM Studios at US$8.45 billion in May last year. This is the biggest investment that Amazon has made in the entertainment industry and the second-biggest acquisition in the company’s portfolio. The biggest acquisition deal that Amazon had completed was acquiring Whole Foods at US$13.7 billion in 2017.

The acquisition deal will make Amazon’s library of TV shows and movies more competitive. MGM Studios owns the James Bond series and has its own cable TV channel Epix. The company is also the producer of popular TV shows such as The Handmaid’s Tale, Fargo, Vikings and Shark Tank.

Amazon hopes to make use of MGM Studios’ legacy in filmmaking to drive the development of its movie and TV show business. Analysts believe that the acquisition deal will also strengthen Amazon’s video streaming business in competing with Netflix and Disney+.