AMC Theatres Stock Surges on Rumored Sale to Amazon – Variety

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Shares of AMC Leisure surged Monday amid hypothesis that the nation’s largest exhibition chain might be an acquisition goal for Amazon.

Each firms didn’t instantly return requests for remark, and the report within the Each day Mail that goosed share costs indicated that Amazon’s curiosity could have waned. It famous, for example, that it was unclear if talks between the businesses have been nonetheless energetic.

Irrespective of. Even the trace that the world’s largest theater chain might be snapped up by the e-commerce big was sufficient to go away buyers salivating. Shares of AMC rocketed roughly 45% in early buying and selling, topping out at greater than $5.80.

For Amazon, which has had intermittent success in backing and releasing unique movies comparable to “Manchester by the Sea” and “The Massive Sick,” proudly owning AMC would give it a showcase for its main releases. Final 12 months, the corporate began shifting away from a conventional theatrical launch technique of screening movies in cinemas completely for 90 days earlier than debuting them on its streaming service, Amazon Prime. That restricted the variety of venues that have been keen to present motion pictures comparable to “The Report” and “The Aeronauts.”  Up to now, Amazon has explored shopping for a theater chain such because the Landmark, which finally was offered to billionaire Charles S. Cohen.

Analyst Eric Wold famous that purchasing AMC would have strategic benefits for Amazon, but additionally expressed some skepticism {that a} deal would happen, noting that the exhibition chain’s inventory has been hammered by coronavirus closures.

“We might be shocked if an acquisition down close to all-time lows by Amazon in a transaction that may greater than probably be for money (and never inventory) would enchantment to AMC’s main shareholders,” Wold wrote.

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