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• Amazon said it would acquire MGM studio for $8.5 billion last May
• EU is scheduled to announce its decision by March 15
Amazon.com Inc ( AMZN) is expected to win unconditional EU antitrust approval for acquiring U.S. movie studio MGM, Reuters reported on Wednesday, citing people familiar with the matter.
Last May, the e-commerce giant announced the $8.5 billion acquisition deal to strengthen Amazon’s video streaming service and ramp up competition against streaming rivals Netflix Inc (NASDAQ: NFLX) and Walt Disney Co’s (NYSE: DIS) Disney+ streaming platform.
The Metro-Goldwyn-Mayer (MGM) acquisition would give Amazon rights to James Bond, one of the most profitable franchises in film history that have earned nearly $7 billion at the box office worldwide, according to MGM.
Expecting regulatory approval
After the deal closes, it will help the world’s largest online retailer to draw more people to subscribe to Amazon Prime, which offers fast shipping along with music and video streaming platform.
MGM also licences content for video games, which could benefit Amazon’s game development business and Twitch, its gameplay video live streaming platform.
The European Commission is scheduled to announce its decision by March 15.
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“Completion of the transaction is subject to regulatory approvals and other customary closing conditions, and we’re working with regulators to respond to requests,” Amazon said.
The U.S. Federal Trade Commission (FTC) is also nearing a mid-March deadline to decide on the deal, the report said, citing a source.
Picture Credit: CNBC