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Amazon is reportedly weighing buying AMC Entertainment and its nationwide chain of movie theaters as a means Promote Amazon’s content and other services.
The Intersect reports that Amazon founder Jeff Bezos has tasked his team of investment advisors and entertainment executives with exploring plans to acquire AMC and its chain of nearly 600 theaters in North America, Europe and the Middle East.
Citing an Amazon insider, The Intersect’s report said the e-commerce giant sees the potential acquisition of AMC as a way to acquire a physical “marketing weigh station” that could be used to promote Amazon in addition to being cross-platform. Prime Movies. Sell ​​other Amazon services through distribution centers.
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AMC is the largest chain in the world Cinema But it has struggled to restore its financial footing in the wake of the COVID pandemic, which has brought restrictions that have limited live audiences in theaters for some time. While those restrictions have largely been lifted, the onset of inflation has made it harder for families struggling with rising costs to go to the movies.
The Intersect emphasized that the discussions are fluid and it is unclear whether Amazon will make an offer to buy the world’s largest theater chain.The outlet reported that Bezos could wait for AMC’s stock to drop or Troubled company on the brink of bankruptcy So you can buy it at a discount.
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Fox Business’ Charles Gasparino Confirm Amazon “A possible acquisition” of AMC has “been considered for a long time but has not been pursued for various reasons”. He added that Amazon was primarily interested in the potential for AMC to be acquired as a “distressed asset” and that no deal has yet been struck and likely never will be.
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AMC becomes Prominent “meme” stocks A coalition of retail investors has driven up the troubled entertainment company’s stock price in recent years. AMC’s valuation peaked at more than $23 billion during a Reddit-fueled surge in June 2021, when it traded at $59 a share.
Shares of AMC Entertainment soar more than 13% In Tuesday’s trading after the report was released, it closed at $5.15 per share, giving it a market value of about $2.67 billion. The stock last traded above $20 a share in August 2022, but has since plummeted and has been below $10 a share since September.
Amazon declined to comment on the reports. AMC did not respond to a request for comment.
Reuters contributed to this report.
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