Amazon may buy cinema chain AMC Entertainment

Amazon founder Jeff Bezos has instructed his investment advisors to look into the feasibility and feasibility of buying the world’s largest movie theater chain, AMC Entertainment. This is reported with reference to knowledgeable high-ranking sources. edition The Intersect. AMC stock soared 21% after news of the potential purchase broke. Amazon is considering using the chain’s approximately 600 theaters around the world to “promote Amazon content and other services,” the sources said. In particular, Amazon Prime films could be promoted through them on average 12-15 films per year.

The AMC chain has had a very difficult time during the pandemic, when theaters have been forced to close or operate under capacity. Now, with inflation, consumers prefer to save on entertainment like going to the movies, so AMC’s sales, like other movie theater chains, are not growing. Since the beginning of the pandemic, AMC shares have fallen by almost 40%. The only exception was the period from May to November 2021, when AMC securities attracted the attention of amateur investors from the social platforms Reddit, and their value skyrocketed over 500% between early May and mid-June. At that time, the capitalization of AMC reached $ 23 billion. But then the shares gradually returned to current levels, and they are 74% lower than in 2014, when the network went public. Now the capitalization of AMC is $2.67 billion.

Alena Miklashevskaya