Amazon signs deal to acquire MGM

The move comes after Amazon certified to the Federal Trade Commission that it had provided all information requested by antitrust investigators reviewing the deal. That move put a deal with that agency on a regulatory watch that has now expired, leaving the company free to proceed, a person familiar with the matter said.

A person familiar with the matter said Amazon has provided more than three million documents to the FTC as part of the review process over the past eight months.

Even if the deadline has passed, the commission will still have the ability to challenge the takeover later if a majority on the FTC votes to do so. The five-member commission is currently split 2-2 between Democrats and Republicans, with one vacancy. President Biden’s nominee for the open seat is pending in the Senate. An FTC spokesperson declined to comment.

Amazon did not comment on the FTC’s review in announcing the completion of the deal.

European regulators approved the deal earlier this week, saying the deal would not reduce competition.

The deal is Amazon’s second largest acquisition in its history, after a deal to buy Whole Foods in 2017 for $13.7 billion.

The deal closes because the technology company is under intense antitrust scrutiny due to its size and power in many different industries. Beyond the FTC’s review of the merger, the agency is taking a broader look at Amazon’s operations.

Last week, a US congressional committee asked the Justice Department to investigate Amazon and some of its executives, in what lawmakers say is potentially criminal obstruction of Congress related to the committee’s investigation into Amazon’s clout.

MGM will be part of Amazon’s Prime Video and Studios unit and will be overseen by senior vice president Mike Hopkins. Amazon did not announce any additional leadership structures for the studio’s operations. Amazon said it is not planning any layoffs at the studio.

With MGM, Amazon will add 4,000 films, including the iconic James Bond franchise, to its holdings. MGM also has a deep library of 17,000 episodes of television content. Amazon is investing heavily to promote its Prime Video platform, which is competing against Netflix Inc., The Walt Disney Company’s Disney+ and other big rivals.

“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,” Mr. Hopkins said in a statement.

This story has been published without modification to the text from a wire agency feed