Sources: the FTC will not challenge Amazon's MGM Studios acquisition as Lina Khan decided not to call for a vote, anticipating opposition from GOP commissioners
Amazon’s MGM purchase moved from an FTC review to an in-depth investigation, while Amazon separately sought Lina Khan’s recusal from Amazon matters. The company then triggered the agency’s mid-March challenge deadline, putting a concrete closing timetable on the commission’s decision.
The reported decision not to seek a vote ends that immediate merger challenge despite Khan’s earlier scrutiny of Amazon’s expansion. It also contrasts with the expected unconditional European approval, leaving no reported regulator in the supplied coverage poised to block the transaction.
First-order effects
Amazon can proceed with its MGM Studios acquisition once the FTC’s challenge window passes, rather than defend the deal in an FTC lawsuit.
Lina Khan and the FTC’s Democratic majority lose the opportunity to test their objections to the transaction because GOP commissioners were expected to oppose a challenge.
Second-order effects
Amazon’s use of the mid-March FTC deadline shows how statutory merger timelines can force a divided commission to resolve a case before its chair can assemble support for litigation.
The result gives MGM Studios deal certainty while shifting the FTC’s Amazon scrutiny back toward its broader probe, which later coverage says was reworked with a new investigative team.
Third-order effects
A commission split can constrain aggressive merger enforcement even when the chair has made a company a priority, making commissioner alignment as consequential as the investigation itself.
For large-platform acquisitions, enforcement may increasingly turn on whether agencies can convert broad concerns into a timely majority-backed case before closing deadlines expire.
The trend: The MGM decision is part of a broader shift in which platform-merger enforcement is shaped by agency capacity, statutory deadlines, and commissioner coalitions as much as by the size of the transaction.
Mini scoop: After closing their $8.5b deal Amazon and MGM got a warning letter from the FTC that it would continue investigating. No surprise since most deals get the same letter. Interestingly, the FTC only interviewed one Amazon exec and no one from MGM. https://www.theinformat…
A dearth of investigational hearings, a pre lawsuit depo, suggest the FTC wasn't close to a lawsuit though we reported the FTC was taking other steps such as looking to bring on expert witnesses. Interviews w multiple execs are typically precede a case https://www.theinformation.…
2. Right now, the Federal Trade Commission only has four commissioners, and the two Republicans tend to adopt pro-monopoly positions on big tech. So @linakhanFTC doesn't have the votes to challenge the acquisition right now. But she will soon.
1. Amazon has ‘closed’ on its MGM acquisition. What does this mean? Very little. Amazon will begin operationally combining MGM with Amazon Studios. That's it. Legally, nothing has changed. The government could still block the combination.
3. Alvaro Bedoya, the fifth commissioner, is going through the Senate confirmation process, and the GOP has held him up. Schumer is also slow and not committed to antitrust action. But he'll get through. So the FTC can investigate but not act. Yet.
Not a great sign for how much teeth Khan's FTC might actually have, at least until the Dems are able to get another commissioner through the Senate — if they're able to at all. https://www.politico.com/...
Furthermore, not having interviewed anyone from MGM suggests that the FTC is far less concerned with the deal itself than investigating Amazon more broadly. The MGM deal is sure to make an appearance in an expected Amazon lawsuit, but is not the agency's central focus.
4. Does this matter? There are certainly problems with the merger, but MGM is a small studio and Amazon Studios itself isn't that important. What does matter is Amazon's Prime program, which is the illegal scheme at the heart of this acquisition. https://www.youtube.com/...
The streaming wars are a race to acquire intellectual property and library catalog from studios that don't already have a viable streaming product. You'll see the descent of second-tier conglomerates as tech companies and upstarts gobble up content. https://variety.com/...
This is a huge gain for Amazon Prime Video! I wonder if Apple will make more of a move to try and buy Sony now? The streaming wars are heating up! Netflix vs. Disney+ vs. Amazon Prime Video vs. HBO Max vs. Paramount+ vs. Peacock vs. Apple TV+ https://twitter.com/...
Congratulations, @AmazonStudios @PrimeVideo @mgmstudios! Now please make the most of your treasure trove and bring us the new In-Canon #Stargate series we've been waiting for so long. #WeWantStargate https://twitter.com/...
Congrats Amazon owns ever more of the world now. Hope we get a new robocop so Amazon can make money on commenting on this dystopian nightmare https://twitter.com/...
Terrible. 4-5 corporations will run the planet. The expansive reach of art will minimize and media literacy will hinge on brand recognition and nostalgia. Book stores will be next. https://twitter.com/...
While this *may* be great for streaming (time will tell), this could have major ramifications for physical media - highly recommend buying any MGM titles on disc that you've been holding out on https://twitter.com/...
US Govt had no case to stop Amazon MGM $AMZN BIG win for consumers as more content will be coming to @PrimeVideo at NO extra cost https://twitter.com/...
Can't wait to welcome MGM as a partner in our global home for talent and create compelling stories for customers all over the world! https://twitter.com/...
Amazon has closed on its acquisition of MGM, the company said Thursday. The deal, first announced in May, includes MGM's catalog of more than 4,000 movies and 17,000 TV episodes as well as the James Bond and Rocky franchises. https://www.aboutamazon.com/ ...
Now they just need to lock down those LOTR rights ($2 bil-ish) and they're off to the Middle Earth reboot races. (MGM had rights to The Hobbit, related characters) https://twitter.com/...