By Peter McLaren-Kennedy • 21 March 2022 • 14:16
EU approves Amazon purchase of MGM
Amazon continues to build its investment in the film and movie industry as the EU competition regulator approves the purchase of MGM Hollywood by the company. The regulator said that the deal presented no competition concerns.
Amazon announced in 2021 that it wanted to expand its video streaming service and that to do so it would be buying MGM for $8.45 billion (7.65 billion euros).
The deal, which many expected would run into problems with EU regulators, was given the go-ahead with the European Commission saying that the sale “would not significantly reduce competition” in European markets, including for movie and TV production.
The commission added that despite holding the rights to successful franchises, including James Bond, MGM cannot be considered “must-have” and is “not among the top production studios.”
One of the oldest studios in Hollywood, MGM has faded in stature over the years falling down to ninth in the ranking of top Hollywood film studios. The company does however still have a vast catalogue that includes many famous characters such as Rocky and RoboCop.
Amazon has said that it intends to use the back catalogue to create new movies and shows.
MGM Studios was founded in 1924 after a merger of Metro Pictures Corporation (founded 1915), Goldwyn Pictures Corporation (founded 1917), and Louis B. Mayer Pictures (founded 1918).
The movie industry is undergoing further changes with online streaming becoming more and more the norm, something Amazon clearly wants to take advantage of through its purchase of MGM. Amazon will effectively own more of the films that is shows, but perhaps more importantly the sale has the potential to increase the movies available on the service.
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Originally from South Africa, Peter is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news.
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