Why did Amazon buy a film company at such a huge price?

For this acquisition, Amazon said that it hopes to use MGM's long film production history and rich film and television resources to help strengthen the development of its film and television department, Amazon Pictures. After the acquisition, as many as 4,000 MGM movies and 1.7 million TV series will also be included in Amazon's film and television department.

According to reports, mike hopkins, senior vice president of Amazon Prime Video and Amazon Studio, said in a statement: "The real economic value behind this transaction is to acquire a large number of IP treasures of MGM movies and TV programs. We will work with MGM's talent team to re-plan and develop these IPS. This transaction is very exciting and provides a lot of opportunities for producing high-quality content in the future. "

The deal may aggravate regulators' antitrust concerns about Amazon.

For Amazon's acquisition of MGM, some market participants are worried that this transaction may aggravate the regulatory authorities' antitrust concerns about Amazon. At present, Amazon is facing continuous investigations by several federal agencies, state attorneys general and European antitrust regulators.

It is reported that after Amazon officially announced the acquisition, US Senator Klobucar called on the US Department of Justice to investigate the merger of Amazon and MGM.