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March 28 (Reuters) – Shares of AMC Entertainment Holdings Inc. (AMC.N) Shares of e-commerce giant Amazon.com Inc jumped 21% on Tuesday following a report (Amazon) Considering buying a theater chain.
Entertainment industry news site The Intersect reported that Amazon founder Jeff Bezos has dispatched his investment adviser and top entertainment executive to explore plans to buy AMC, citing sources familiar with the discussions.
AMC and Amazon declined to comment on the report.
Amazon closed an $8.5 billion deal for MGM last year, putting the company on the back of “Rocky” and James Bond, as it bolsters its Prime Video streaming service amid rising competition.
Movie theaters have struggled to draw crowds since pandemic restrictions were lifted as rising costs forced people to cut back on outdoor entertainment and spend more on groceries and rent.
Wedbush Securities said: “Given AMC’s high debt and high valuation, we believe that AMC is an unlikely acquisition target in general.”
The online retailer is a better buy for Britain’s Cineworld Group Plc, the brokerage said. (cymbals)which archive Filed for US bankruptcy protection in September.
AMC’s long-term debt totaled $5.17 billion, according to Refinitiv data.
The company’s shares gave up some gains and were last up 10%. They were up about 11% this year as of Monday’s close, giving the company a market value of about $2.4 billion.
One of the famous “meme” stocks, AMC was valued at more than $23 billion at the peak of its Reddit-fueled surge in June 2021.
Reporting by Tiyashi Datta and Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila
Our standards: Thomson Reuters Trust Principles.
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