Tech News

Amazon’s acquisition of MGM may be under investigation

Pinterest LinkedIn Tumblr

Following Amazon’s recent acquisition of MGM, the deal is being reviewed by the Federal Trade Commission.

This means that Lena Khan, an outspoken Amazon critic who recently became the chair of the Federal Trade Commission, is overseeing the deal.

The actions may indicate how it will handle antitrust cases against Amazon in the future.

Read also: Amazon buys MGM for $8.45 billion

And thementioned The Wall Street Journal reported that the Federal Trade Commission requested oversight of the deal during interagency negotiations because it is currently overseeing an ongoing antitrust investigation.

The Department of Justice and the Federal Trade Commission have divided antitrust investigations against tech giants — Apple, Google and Facebook — but the FTC has lobbied for oversight of the Amazon deal.

Read also: Apple and Google face Japanese antitrust investigation

Either way, the deal will likely come under scrutiny. Large acquisitions and mergers that may or may not create antitrust issues are reviewed as standard practice.

Khan, who was sworn in as president last week, said in a statement at the time that she looked forward to working with her colleagues to protect the public from corporate abuse.

Amazon ambitions:

Amazon acquired MGM in May in a deal valued at nearly $9 billion.

The acquisition saw Amazon acquire tens of thousands of hours of entertainment, including many James Bond titles.

Read also: Strengthening the proposed ban on Huawei equipment

At the time, Mike Hopkins, Vice President of Prime Video and Amazon Studios, said in a statement: “The value behind this transaction is a treasure trove of intellectual property on the list that we plan to reimagine and develop with the talented MGM team.”

Amazon does not charge an additional or separate fee for its streaming service. And theLike 2-day shipping, free grocery delivery, and Amazon Music, the company’s live streaming service is offered as part of the overall experience. However, it lacks the prominence of competitors like Disney+ and Netflix.

Also Read: Spotify…4 Tricks You Didn’t Know About Streaming Music

While the true value of the acquisition is still not clear. The deal saw the e-commerce giant win much-needed intellectual property.

And Amazon may not need subscribers who pay for Prime Video. But it needs their presence to help it continue to make Prime membership a competitive package of subscription offerings and services.

Have an article/sponsored post to share? Whatsapp: +2348129656985.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Pin It