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Thread: AMC Entertainment soared 56% after reported talks with Amazon.

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    AMC Entertainment soared 56% after reported talks with Amazon.

    Quote Originally Posted by Yahoo

    (Bloomberg) -- AMC Entertainment Holdings Inc. jumped as much as 56% on a media report that Inc. has discussed a potential takeover of the largest U.S. movie-theater owner, though it pared the gains when another outlet said the companies aren’t talking.
    Quote Originally Posted by Yahoo
    It’s unclear if the talks are active or will lead to a deal, the U.K.’s Mail on Sunday newspaper said, citing unidentified sources. Amazon doesn’t comment on speculation, a spokeswoman said Monday. AMC didn’t immediately respond to requests for comment.

    The trade publication Deadline reported Monday morning that “there are no talks,” citing unidentified sources.

    AMC shares rose as much as $2.31 to $6.41 in New York trading. They were up as little as 19% minutes after the Deadline report and were up 36% to $5.58 at 11:28 a.m. The stock was down 43% this year through last week, battered along with the rest of the cinema industry by a worldwide shutdown for the coronavirus pandemic.

    AMC’s bonds surged on reports of the talks with Amazon, and were among the top gainers in the U.S. high-yield market on Monday, according to Trace bond-trading data. AMC’s senior subordinated bonds due 2026 were up as much as 10 cents on the dollar to 32 cents, data shows.

    The reported talks are unlikely to spark a price war for AMC, Bloomberg Intelligence media analyst Amine Bensaid said in a note. “Movie-going is unlikely to fully bounce back in a post-Covid-19 world and may create risks for an acquirer,” he said. “AMC’s elevated debt load and unavoidable fixed costs mean the company’s near-term financial flexibility will be severely challenged.”

    AMC showed its concern about existential threats with its reaction to last month’s straight-to-streaming release of the kids movie “Trolls World Tour,” which Comcast Corp.’s Universal Pictures crowed about as a high-grossing success. AMC said it would no longer show Universal’s movies.
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    Last edited by uncharted; 05-12-2020 at 09:00 AM.
    "I tremble for my country when I reflect that God is just: that his justice cannot sleep for ever." - Founding Father Thomas Jefferson

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  3. #2
    Amazon's got the midas touch these days. Would be crazy if they bought it to include a limited monthly movie going experience as a way to boost their e-commerce sales through PRIME memberships.
    @Ehanced_Deficit's real agenda on RPF :
    DNCIA-SB (Soros, Brennan)

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