In a flash, Amazon (NASDAQ: AMZN) announced that it had concluded the $8.5 billion agreement to buy MGM Studios ( OTC: MGMB), the second-largest acquisition to date.
“MGM is now a part of Prime Video and Amazon Studios,” the companies stated. “The legendary, almost century-old company — with more than 17,000 film titles, 4,000 television episodes and the 180 Academy Awards, and 100 Emmy Awards — will add to Prime Video and Amazon Studios with their efforts to provide an array of entertainment options to consumers.”
It comes just 2 days since the agreement received approval from Europe and was approved without the expected opposition by Federal Trade Commission U.S. Federal Trade Commission.
Amazon was evidently eager to complete the deal just a few weeks ago when it gave confirmation of the FTC that it had provided all the information requested and was a precursor to a “shot timer” of a March 2 deadline before the company was able to close the deal.
In spite of a decision that appeared to be a toss-up for the FTC, The agency was facing the possibility of a 2-2 split among Democrats and Republicans because of a vacancy. Also, the FTC could have secured additional time if a roadblock to the agreement was put in place in Europe However, this was not the scenario.
The FTC may still be able to issue legal objections to the transaction. However, it is difficult to unravel, as Amazon is clearly moving at full pace with its integration.