AMC Entertainment surges 56% on report of takeover talks with Amazon

[tacobell fan]

AMC Entertainment Holdings Inc. jumped as much as 56 per cent on a media report that Amazon.com Inc. has discussed a potential takeover of the largest U.S. movie-theatre owner, though it pared the gains when another outlet said the companies aren’t talking.

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 US$2.31 to US$6.41 in New York trading. They were up as little as 19 per cent minutes after the Deadline report and were up 36 per cent to US$5.58 at 11:28 a.m. The stock was down 43 per cent 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.

Chinese real estate tycoon Wang Jianlin, who spent billions of dollars building one of the world’s biggest cinema operators, controls AMC through his closely held Wanda Group. Wanda acquired AMC in 2012 for US$2.6 billion as part of its expansion into entertainment. It subsequently acquired Nordic, Carmike and Odeon & UCI Cinemas.

Along with its vast retail and web-services operations, Amazon is an active player in streaming with its Prime Video platform, along with releasing original films. Like Netflix Inc., Amazon is eager to shore up its burgeoning position in Hollywood as new and old players scrap for content deals. Buying a theatre chain would guarantee another outlet for its movies.

Eric Wold, an analyst at B. Riley FBR, wrote to clients Monday that a cash offer for AMC, which is on track for its fourth straight year of stock declines, wouldn’t appeal to investors. A cash offer would be more likely than a stock deal, given AMC’s depressed stock price, he said.

[DummyVariable]

AMZN above 2400 ayithe chaalu

 

[tacobell fan]

1 minute ago, DummyVariable said:

AMZN above 2400 ayithe chaalu

 

2411

[DummyVariable]

1 minute ago, tacobell fan said:

2411

Hold avvali kada weekend varaku

[Vaampire]

10 minutes ago, DummyVariable said:

AMZN above 2400 ayithe chaalu

 

Easy. Don't sell. U can even invest more.

[DummyVariable]

4 minutes ago, Vaampire said:

Easy. Don't sell. U can even invest more.

2430 target?

[idibezwada]

just podune news chusi konna ani vastaru..wait chey..

[Vaampire]

23 minutes ago, DummyVariable said:

2430 target?

It's long term stock. If things go well, we may see 3k by EOD. I am investing in it from 2017 when stock price was 980

[tacobell fan]

1 minute ago, Vaampire said:

It's long term stock. If things go well, we may see 3k by EOD. I am investing in it from 2017 when stock price was 980

Oh my kumar uncle. 

[Vaampire]

23 minutes ago, idibezwada said:

just podune news chusi konna ani vastaru..wait chey..

Last month vere thread lo disco ainsppudu idhi 2 ki padindi. I still don't understand how it's $6 now.  

[DummyVariable]

15 minutes ago, Vaampire said:

It's long term stock. If things go well, we may see 3k by EOD. I am investing in it from 2017 when stock price was 980

Ok bro. Mostly options choostha. Bullish positions lone unta mostly for amzn. Let us see.

[Spartan]

1 hour ago, idibezwada said:

just podune news chusi konna ani vastaru..wait chey..

[CH_Desi]

Endi veedu, edi vadalalda, inka life lo amazon lekunda undatam kastham chesetattu unnadu.

[Hitman]

Monthly 1 free movie for PRIME members అంటాడు ఏమో ... అసలు theaters trend తగ్గిపోతుంటే ఇప్పుడు ఈ deal కి వెళ్తాడా ..doubt ? ఈ news fake అన్నారు అంటే AMC ఢమాల్ అవుద్ది ..they mentioned they have liquidity to survive until JULY only  

[JambaKrantu]

My 5k became 8.2k