Monday, August 25, 2025

Latest

Is Amazon Considering An AMC Theatre Acquisition?

E-commerce and streaming giant Amazon (NASDAQ: AMZN) is supposedly considering buying AMC Entertainment Holdings Inc (NYSE: AMC), sending the theatre chain’s stock soaring by the most in a month.

As first reported by The Intersect and later cited by Bloomberg, Amazon’s investment advisors are once again allegedly exploring a potential acquisition of AMC, which has been left in financial turmoil after the meme trading frenzy of the Covid-19 era fizzled out.

The speculation sent AMC shares to a high of $5.13 at the time of writing. According to people familiar with internal discussions, if Amazon’s plan materializes, the theatres would be used to promote Amazon Prime films, serve as product distribution centers, or even grocery delivery hubs.

This is not the first time that Amazon has explored such a buyout; back in 2020, Forbes US published a piece speculating Jeff Bezos’ conglomerate would become the largest movie theatre chain in the world. The article’s prophesy didn’t end up coming to fruition likely because of the Paramount Decree, whereby the Supreme Court in 1948 ruled that film studios are prohibited from acquiring movie theatres as per anti-trust laws.

However, in a routine review of decrees, the Department of Justice in 2019 decided to terminate the Paramount Case, applying a two-year sunset period to the decree because it was “unlikely that the remaining defendants can reinstate their cartel.” The legislation, which began a two-year sunset termination period on August 7, 2020, is thereby no longer applicable, paving the way for Amazon to potentially obtain AMC’s theatres if it so wishes.

The problem at large

For Amazon shareholders however, the problem with such an acquisition appears to be the debt that the company would be beholden to in the event of an equity transaction. Despite having 357 theatres across the US and a further 236 theatres globally, there was a cost related to building that empire.

In the most recent fiscal year, AMC Entertainment generated total revenues of $3.9 billion, while operating costs totaled $4.4 billion, resulting in an operating loss in 2022 of $0.5 billion. After borrowing costs are taken into consideration, the firm posted a net loss of $1.0 billion for the year.

The balance sheet looked no better either, with the company having a cash balance of $0.6 billion and total assets of $9.1 billion. Current liabilities meanwhile came in at $1.7 billion, and after corporate borrowings of $5.1 billion and other liabilities, the companies total liabilities figure came in at $11.8 billion, giving shareholders negative equity in the company.


Information for this briefing was found via the links and sources mentioned. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

First Majestic Q2 Earnings: Another Record Quarter

Sandstorm Gold Fades Into Royal Gold Merger

Equinox Gold Q2 Earnings: Back On Track

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Amazon to Pay Some Customers Who Choose to Pick Up Their Orders

After decades of setting the standard for instant gratification in home deliveries, Amazon (Nasdaq: AMZN)...

Wednesday, May 10, 2023, 12:49:00 PM

AMC: Judge Rejects Agreement To Convert APE Preferred Units Into Common Stock

After the market closed on July 21, a Delaware Chancery Court judge issued a surprise...

Sunday, July 23, 2023, 09:53:13 AM

Analyzing AMC, Bitcoin, & Gold With Gareth Soloway – The Daily Dive

Today on the Daily Dive, we sit down with frequent guest Gareth Soloway of InTheMoneyStocks.com....

Wednesday, August 4, 2021, 01:30:00 PM

AMC Shares Sent Soaring After UK-Based Hedge Fund Reveals Short Position

Shares of AMC Entertainment were sent surging above $30 on Thursday, after it was revealed...

Friday, August 6, 2021, 02:42:00 PM

Amazon Sued for Inflating Prices, Penalizing Merchants for Offering Lower Prices on Rival Sites

E-commerce giant Amazon was slapped with a lawsuit from the state of California on Wednesday,...

Wednesday, September 14, 2022, 05:07:04 PM