MGM/Amazon deal said to see EC state of play meeting today

bennymarty/iStock Editorial via Getty Images

Executives from Amazon's (NASDAQ:AMZN) and MGM Studios (OTC:MGMB) are said to be attending a "state of play" meeting with the European Commission today.

While state of play meetings have in the past been associated with concerns about a transaction, these types of meetings have been occurring more frequently, according to a Dealreporter item, which cited a source familiar. The parties are confident they will be able to receive EC Phase 1 approval without any concessions.

The report comes after the Information reported Monday that the U.S. Federal Trade Commission is said to be preparing for a potential lawsuit to challenge the transaction. The FTC is said to be exploring options including hiring expert witnesses and will decide in the next few weeks if it will pursue a block of the deal.

The MGM/Amazon deal was notified to the European Commission on Feb. 8, with a provisional deadline for a Phase I decision coming March 15.

Dealreporter last month said the MGM/Amazon deal will likely take a while to wrap up as the FTC continues to pore over it for antitrust concerns.

Comments

[justin1991]

Ya its ridiculous that this deal would be turned down. It's about building a better prime experience!

[nerd_rage]

Of all the deals under consideration, this strikes me as the least concerning of them all. AMZN wants MGM so it can use its IP to create big-brand streaming series.

The pattern is pretty well established. They're making Jack Ryan, Jack Reacher, Lord of the Rings, and soon Blade Runner and Alien series. MGM nets them Stargate, Pink Panther, Robocop and James Bond. All could be series. The Broccolis will probably nix any attempt to overexpose Bond on streaming, but why not a series based on Felix Leiter or some villainous Bond babe?

None of these series would exist unless the deal goes through. Antitrust is about protecting consumer choice, so why squelch consumer choice? NFLX might not like this deal but the subscribers will.

[bockwai007]

@nerd_rage Stargate is long overdue for a continuation.