Netflix, the $86bn video-streaming company, and Amazon, the online retailer, have agreed to merge and acquire all of their streaming video properties, the companies said in filings with the US Securities and Exchange Commission.
Netflix and Amazon will combine their assets into a unit called “Broadband Video,” which will include their TV shows, movies, music and original programming, the filing said.
The combined company will be known as “Broadcast Video.”
The transaction was first reported by The Wall Street Journal.
The deal is expected to close in the second quarter of this year.
The companies’ assets include “all the intellectual property rights in their content, including in-house video content produced and distributed by them, as well as all the rights to broadcast their content,” the filings said.
Netflix has more than 2.6bn subscribers worldwide, according to data from comScore.
Its subscription growth is driven by its original programming including House of Cards and Orange is the New Black.
The company’s revenues have grown every quarter since 2015, but are expected to fall each quarter.
Amazon is a streaming video company that operates as an internet-based media empire.
The two companies began a merger deal in February 2018 and have been linked to a merger in the past.
The US Justice Department has said it is investigating whether the deal violated antitrust laws.
In a statement on Tuesday, Amazon said it “is thrilled to add a partner to its growing catalogue of content creators and audiences.”
The deal includes Amazon’s Prime streaming service and Prime Video, which is available to more than 30 million US customers.