Yes, that IS Megatron...and supposedly, Jazz is back too...hence, the "Fallen".
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The Fallen, from what I understand, is the original race of robots that inhabited Cybertron before the Transformers came around. Something apparently happened that wiped them out, and now they're back and pissed. I could probably go check some wiki, but that's too much effort.
Also: if Franz Ferdinand is not on the soundtrack, this movie fails.
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