It’s an understatement to say that movie theaters have been struggling these last few months. Specifically AMC, which has 1,000 outlets and 10,000 screens around the world. The current global situation has theaters shut down. That couldn’t have come at a worse time for AMC who’s debt is now close to $5 billion. A group of AMC lenders has reportedly hired lawyers to advise on restructuring options and even talks of filing for bankruptcy. Things are not looking good for AMC. In the shadows there may be company ready to jump in and save the cinema chain.
Like a shark that senses blood in the water, according to Daily Mail, Amazon is rumored to be interested in taking over the cinema chain. The report states that both Amazon and AMC Theaters have had early talks about the possibility of a takeover. It’s not clear at the moment if both companies are still actively talking. AMC’s stock market value has dropped in the last few years to $420 million. That amount wouldn’t be an issue for Amazon who generated profits of $2.5 billion in the first three months this year.
Not bad for a company that started back in 1994 as an online bookstore. Amazon seems to be slowly taking over. Known now for their online shopping site, they have also grown their video service, producing their films and television series via Amazon Studios. They became the first streaming service to win an Oscar in 2017 for their film Manchester By Sea, which starred Casey Affleck and Michelle Williams. That same year Amazon also bought the supermarket chain Whole Foods Market.
In the past few years, streaming services like Amazon Prime Video, have shaken up the film and television industry. Buying a theater chain would be a game-changer as it would be able to control the screening of films. Also this wouldn’t be the first time that Amazon attempts to buy a theater chain. Back in 2018 they tried to buy Landmark Theaters, but lost out to another buyer. There is one problem though, if they were to buy AMC, they would have control over a studio and a cinema chain. This is currently against regulations in the US. So not sure how that would work.
ALSO SEE: AMC THEATERS THREATENED BY TROLLS WORLD TOUR VOD SUCCESS, REFUSES TO SHOW FUTURE UNIVERSAL FILMS
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Source: Daily Mail