Major Brands Beginning to Test the Metaverse Waters

Amazon Acquires MGM for $8.5 Billion

Expanding Further Into Entertainment

Amazon (AMZN) closed its deal to buy Metro-Goldwyn-Mayer last week. This brings a massive amount of content to Amazon Studios and Prime Video, with an additional 17,000 television episodes and 4,000 film titles now controlled by the tech giant. The deal is Amazon’s second largest, after its 2017 acquisition of Whole Foods for $13.7 billion.

The company’s appetite for entertainment spending has also extended to sports lately. Last year it snagged exclusive national video rights to Thursday Night Football, which costs the company $1 billion per season. It’s also currently looking into a football subscriber package, which currently exists in the form of DirecTV’s Sunday Ticket.

FTC Chiming In

Amazon provided requested documentation to antitrust regulators and sat out the required wait period for the review process. With that hurdle cleared, the company proceeded to close the deal.

Even so, the Federal Trade Commission says it’s taking an extended look. The five-person commission currently has one vacant spot, and has now received more than three million documents from Amazon to sift through. The commission’s chairwoman has been critical of Amazon’s market power, and the deal could end up being challenged.

Disney+ and Netflix on Alert

Netflix (NFLX) and Disney+ (DIS) will see more competition for streaming services as Amazon expands its Prime Video offerings.

Disney has successfully developed content based on spinoffs from its acquisitions like its popular Star Wars show The Mandalorian, which was made possible by its purchase of LucasFilm. With James Bond and other popular characters now in the Amazon family, the tech giant could look to create similar offerings. Others ultimately wonder: might consolidation limit creativity and variety?

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

TLS 1.2 Encrypted
Equal Housing Lender