)
Amazon is reportedly considering the acquisition of the 600-plus-location AMC Theatres chain, a move that would be the company's latest foray into the movie business.
Amazon Chairman Jeff Bezos reportedly "dispatched his investment advisors and top entertainment chiefs to explore acquisition plans," according to entertainment publication The Intersect, which cited senior sources with knowledge of the discussions. The news sent stock of the chain's parent company, AMC Entertainment Holdings, soaring 21% on Tuesday, Yahoo Finance reported, though by the end of trading those gains had leveled out to 13%, closing at $5.15 per share.
The thinking is that Amazon would use the theater real estate not only to promote its films but also to distribute goods purchased through its online platforms. It would also allow Amazon to gather "crucial data from AMC’s annual 200 million moviegoing customers."
Amazon has dug into established entertainment platforms in recent years. It announced in late 2022 that it would invest $1B in films for theatrical release and bought MGM about a year ago in an $8.5B acquisition.
Amazon has also dipped its toe into the theater ownership game in the Los Angeles area, buying a former ArcLight Cinemas in Culver City’s downtown. The venue opened for customers in December. One theater pales in comparison to the hundreds of theaters that AMC owns around the globe.
A potential union of AMC and Amazon was framed as a "lifeline" for AMC by The Intersect, but the publication reported that talks are ongoing and there is no guarantee that they will end with Amazon making an offer.
The Intersect, which first reported the news, is a newsletter published by former Los Angeles Times editor Joe Bel Bruno.
)
)
)
)
)
)
)
)
)
)
)
)