• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKI, Google Scholar, Electronic Journals Library, Crossref, Ulrich's Periodicals Directory, MESLibrary, etc.
    • E-mail: joebm.editor@gmail.com
JOEBM 2022 Vol.10(3): 159-164 ISSN: 2301-3567
DOI: 10.18178/joebm.2022.10.3.691

Doing a Deal? Merger and Acquisition Negotiation and Business Strategy Analysis: Case Study of Amazon and MGM

Luwen Xu, Hanwen Zhang, and Lulu Zhang

Abstract—In 2021, Amazon acquired MGM for $8.45 billion, making it Amazon’s second-largest acquisition and giving it a leading position in streaming. In addition, the acquisition is due to Amazon’s lack of good original productions to compete with the media world, MGM’s lack of funds to produce better intellectual property rights, and through pre-negotiation BATNA analysis, the deal is the best option for both parties. But the acquisition also raises questions about both sides, such as distribution issues and antitrust concerns and so on. However, through the Porter Five Force model to analyze the post-acquisition competitive strategy, should be confirmed by the previous analysis of BATNA, this acquisition is a win-win situation. As the acquisition is too new, by reviewing the company’s historical literature and collecting the literature of the negotiation study, this paper summarizes four parts, namely, the introduction and business pain points of Amazon and MGM, BATNA before the negotiation, the pre-negotiation causes and consequences, and the post-acquisition business strategy. The paper also makes suggestions for future research on the acquisition.

Index Terms—Amazon, Metro-Goldwyn-Mayer, negotiation, BATNA, Michael Porter’s five forces model.

L. W. Xu is with the School of Economics and Management, Southwest University, Chongqing, 400715 China (e-mail: emmaxu1103@hotmail.com). L. L. Zhang is with the Queen's University Belfast, Britain, 102206, China (e-mail: Lzhang32@qub.ac.uk). H. W. Zhang is with ASAA High School, 250000 China (e-mail: 2998074344@qq.com)


Cite:Luwen Xu, Hanwen Zhang, and Lulu Zhang, "Doing a Deal? Merger and Acquisition Negotiation and Business Strategy Analysis: Case Study of Amazon and MGM," Journal of Economics, Business and Management vol. 10, no. 3, pp. 159-164, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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