Goodspeed is buying Amazon Video for $13.5 billion in a deal that could increase its online video footprint and its customer base.
Goodspeed announced the deal Wednesday.
Amazon Video currently has about 2.3 million paying subscribers.
Goodspeed will acquire the media company from its existing parent, Media Ventures, which also owns Amazon.
The acquisition is expected to close in the fourth quarter of 2021, according to Goodspeed.
The transaction includes a $3.9 billion option for a 50 percent shareholding in Goodspeed, which Goodspeed will use to expand its global video footprint.
The company said it will use the money to expand video content and support other initiatives.
The combined company will focus on two areas: entertainment and retail.
GoodSpeed, which has a global footprint, owns a number of popular brands, including Amazon, Netflix, Hulu and YouTube.
The acquisition of Amazon Video is expected, with the sale of a minority stake to GoodSpeed likely to close by 2021, Goodspeed said in a statement.
GoodFast said it is investing $2.9 million into the merger, which will be led by CEO John Hulme, a former president and chief executive officer of AOL, Inc. In addition to GoodFast, Amazon will also acquire Amazon Studios and Amazon’s media network The New York Times.
GoodFingers and the New York Post, which both operate in Amazon’s hometown of Seattle, are also part of the deal.
Goodspeed and Amazon said they are continuing to explore strategic partnerships.
Amazon has more than 9.7 million paying customers.
GoodVideo has more that 5 million.
The combined company aims to create a video platform that delivers more than 1 billion hours of content each month.
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