AMC has been all the excitement over the previous two years after turning into a meme inventory (spawned from a Reddit obsession) that despatched shares rising after which plummeting so low that CEO Adam Aron even requested for a pay freeze in an try and compensate for shareholders’ inventory losses.
However now, the theater chain is on the rise once more after reviews surfaced that web behemoth Amazon is seeking to buy the corporate.
Associated: Clients, Actors Slam AMC Theaters for New Ticket Costs that ‘Penalize Folks for Decrease Revenue’
AMC was up over 21% in a 24-hour interval at its peak Tuesday morning after reviews that Jeff Bezos and an funding advisory group are exploring a possible acquisition.
The information was initially reported by The Intersect, which cited sources accustomed to the matter.
An “Amazon insider” instructed the outlet that the theaters can be used as “advertising weigh stations” for the retailer, whether or not it is selling Amazon Prime films in theaters, utilizing the house as native distribution hubs, or gathering information from AMC prospects in an try to supply and distribute extra profitable content material beneath the Amazon title.
“Many purchasers work together with the AMC model each week and bodily go there,” a former Amazon government instructed the outlet. “There may even be a subscription aspect to it as a part of Prime. And it will assist in reserving Amazon films.”
Neither Amazon nor AMC responded to Reuters request for remark.
Associated: AMC Continues to Experience Social Media Hype as Share Costs Skyrocket to 50% Enhance
AMC was in scorching water final month after asserting its new ticketing system known as “Sightline at AMC,” which is able to worth tickets into three tiers primarily based on seat choices.
“Whereas each seat at AMC delivers an incredible moviegoing expertise, we all know there are some moviegoers who prioritize their particular seat and others who prioritize worth moviegoing,” Eliot Hamlisch, EVP and CMO of AMC Theaters, stated in an organization launch on the time.
AMC operates roughly 600 theaters throughout North America, Europe, and the Center East.
As of early Wednesday afternoon, AMC was nonetheless up 9.8% in a five-day interval.
