Amazon closes the MGM operation after approval of US regulatory bodies

Two days after the European Union approved Amazon’s acquisition of MGM, the company announced that the FTC and US regulators had also approved the purchase of MGM’s studios valued at $8.45 billion.

This Thursday the 17th was the deadline for the Federal Trade Commission to decide whether the purchase of MGM by Amazon was a threat to competition or not, and the commission ruled that there were no arguments against it, and gave green light for the transaction.

The FTC still has the authority to act in order to reverse their decision in the future if a majority of commissioners votes to do so, but the federal entity would have to go through the courts.

The MGM purchase is Amazon’s biggest acquisition since it agreed to buy Whole Foods in 2017 for $13.7 billion. In 2020 and 2021 Amazon spent more than $24 billion on video and music for its streaming services.

After the FTC decision was disclosed on Thursday the 17th, Amazon shares rose closing 2.70% above the previous market, with a share value of US$3,144.78.