Amazon Says It Has Closed A Deal To Buy MGM

Amazon on Thursday said it had closed a US$8.5 billion deal to buy MGM, adding the fabled movie maker to its stable as it looks to draw consumers through more streaming video.

In a blog post, Amazon said it would welcome all MGM employees to the company and work with the studio's leadership, indicating there would not be layoffs. The decision to close comes after a deadline passed for the US Federal Trade Commission to challenge the deal.

The Seattle-based online retailer announced the transaction in May last year, saying MGM offered a trove of content to develop and use to draw customers to its fast-shipping and streaming club, Amazon Prime. MGM’s thousands of films include Ben Hur, The Wizard of Oz and the Rocky and James Bond franchises.

Nearly a year later, Amazon is now clear of regulatory hurdles. The European Commission approved the deal on Tuesday, saying it would not pose competition concerns. Amazon earlier said it had "substantially complied" with US requests for information about the deal. (Reuters)