Amazon Acquires MGM

When you turn to Google.com to search for a product, what’s the top website on the result pages?

Hint: This website sells more than 12 million products…

We are talking about none other than Amazon, the e-commerce and tech giant. It has captured a huge share of the market and people’s trust.

In 2021, Amazon became the talk of the world as it acquired MGM (Metro-Goldwyn-Mayer). We are sure you are well aware that MGM is a world-renowned entertainment company.

Today’s article will walk you through all the details of this merger.

Amazon’s Acquisition Of Metro-Goldwyn-Mayer (MGM)

Amazon sealed the deal for MGM’s acquisition for a whopping $8.45 billion. It will enable it to expand its TV and movie offering to Prime members, consumers, and businesses.

The deal acquiring MGM means that Amazon now has the right to stream the entire catalog of MGM movies. It is a major coup for Amazon. It will give it access to some of the biggest blockbusters of the past decade, including The Dark Knight, Gladiator, The Dark Knight Rises, and The Hobbit.

Also, the deal will allow Amazon to increase its film library, which has been a major part of its strategy. Yet, this deal is also a huge win for the movie industry. It enables the studio to tap into Amazon’s vast distribution network and data-driven marketing resources

Amazon’s closure highlights the limits of Washington’s antitrust scrutiny of tech giants. The antitrust groups pushed FTC Chair Lina Khan to block the deal to slow Amazon’s growth.

Regulators found out that the Amazon and MGM acquisition won’t reduce competition as they have limited overlaps. This deal was closed after the Federal Trade Commission (FTC) ‘s deadline expiration.

This acquisition is a huge thing for Amazon. But is acquiring MGM a smart move by Amazon? Plus, how will it impact loyal Amazon users?

Amazon Users

The new owners of Amazon and MGM will now be better positioned to compete with the other big players in the industry.

This is the first time Amazon has partnered with a major film studio to bring their movies to the site. According to Amazon, they will provide quality content together. Amazon users will be able to access more than 100,000 movies and TV shows through Amazon Instant Video. This means that Amazon users will have larger and better options for streaming.

Amazon’s acquisition of the movie studio is not surprising. This is because the company has been a huge content consumer since it was founded. Yet, the scale of the deal is massive. Also, the acquisition is not a deal for Amazon. It is a big win for the movie industry MGM. That’s because Amazon’s customer base is huge. MGM will reach a wider base of customers than ever.

The acquisition will also give Amazon an edge over its competitors, including Netflix and Apple. The deal will give the company access to the most popular films of the past decade. This will definitely pour in more customers for Amazon.

Hollywood Studio MGM

MGM and Amazon will gain access to an impressive library of Hollywood titles.

Throughout history, MGM has produced outstanding entertainment. Some of its work is still popular and thoroughly enjoyed by the new generation.

MGM’s COO Chris Brearton said that it was pleasing that MGM has joined Prime Video with its innovative content, brands, and inspired partners.

MGM’s films and television series are among its most well-known and admired works. MGM aims to provide audiences with the best entertainment of years by partnering with Amazon Studios and Prime Video. This, again, is a plus point for users. They will have more variety of engaging content.

Amazon MGM Merger

The most interesting thing about this merger is that it could change the way people use Amazon. And how companies compete with one another. This merger is significant in technology and how companies can use that technology to improve the user experience. There are so many things that could change for Amazon.

Amazon has developed into something much more than a simple online shopping website. With this merger, Amazon will have much more control over the way people use its services. This can impact how people access information and how companies compete against one another. They are starting to offer video content, music, movies, books, etc.

Now, with the merger, they are getting bigger and stronger. Also, Amazon will be much more competitive with companies like Apple and Microsoft.

With this merger, we can expect to see Amazon becoming a giant in the technology industry. Companies that sell tech-related products will want to sell to Amazon. Due to Amazon’s increasing popularity and customer base.

Jeff Bezos About Merger

Amazon CEO Jeff Bezos has said that his company wants to add talent, especially from other industries. Such as the media, entertainment, and education sectors, to its growing roster of services.

He hopes to use the acquisition to build an entertainment powerhouse. Which includes video streaming and original content creation. The purchase could also lead to further investments. Which is in the e-commerce giant’s growing video game and TV licensing business.

Public’s Response To Merger

The merger between Amazon and MGM has been the talk of the town for quite some time now. And people have mixed responses about this merger. They are still confused about why the companies decided to merge. There is so much speculation that nobody knows the real reason. Some say that the two companies have had a business rivalry for many years now.

They believe that this is the reason why they have decided to merge.

Yet, others have a different opinion. They believe that this merger is about the two companies finding common ground. Some people think this is all about creating a stronger company with a more powerful market. Many believe the merger makes Amazon’s business stronger by creating a larger platform. Another reason could be to gain better customer service for the customers.

Conclusion

Amazon has taken a major leap towards a phenomenal and growing success. The merger will prove profitable and attract more customers to join Amazon’s customer base. People are happy that they will now have access to various content.

But, on the other hand…

Some people are concerned that the acquisition will increase prices.

What do you think about it? Will Amazon increase its prices to provide more enjoyable content? Let us know in the comments below.