On Thursday, Amazon announced it had closed its acquisition of MGM, following approval of the merger this week by the European Union and the US Department of Justice’s recent approval of the Warner-Discovery streaming merger. Amazon certified compliance with the U.S. Federal Trade Commission’s “second request” for documentation 30 days ago, allowing the company to close the deal.
“The streaming wars are giving consumers a menu of options, not a monopoly. Amazon’s MGM deal is no different than Disney buying Marvel, or Netflix’s deal with Shonda Rhimes,” said Chamber of Progress CEO Adam Kovacevich. “Chairwoman Khan made her name opposing Amazon and she could still sue to undo this deal, but with Europe approving the deal and DOJ approving Warner-Discovery, an FTC lawsuit would look more political than legally sound.”
As competition in the streaming service industry increases, some companies have explored creating reduced-price, ad-supported options to attract consumers. Forbes reports that the intense competition among streaming services has also left investors with questions about how many streaming services consumers might be willing to pay for.
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