Amazon closes deal to buy Metro-Goldwyn-Mayer for $8.5bn

A deal between the companies

US corporation Amazon has closed a deal to acquire film company Metro-Goldwyn-Mayer for $8.5 billion. This was reported by Bloomberg on Thursday.

According to it, the merger became possible after the EU antitrust regulator found earlier on Tuesday that the deal does not create competition problems in the EU. According to Bloomberg, the agreement could be challenged in the future by the US Federal Trade Commission if a majority of its members vote to file a lawsuit.

It is worth noting that the new acquisition, which is the largest in the last 5 years, will allow Amazon to compete more effectively with streaming services such as Netflix and Disney+. For example, Amazon will get the rights to James Bond, a franchise that has earned about $7 billion at the global box office.

Amazon (NASDAQ: AMZN) shares opened at $3,052.81 today.

Also of note, the company's 52-week high is US$3,773.08 and Amazon's 52-week low is US$2,671.45.

However, Metro-Goldwyn-Mayer shares opened at $41.74 and at the time of writing at 10:52 a.m. ET, the company's shares are trading at a loss. Also, the company has a market capitalisation of $18.51 billion.

Metro-Goldwyn-Mayer was founded in 1986 by Marcus Loew.