The Pros and Cons of Amazon Buying AMC Theatres

Trey Williams

The ongoing novel coronavirus pandemic has shone a light on the shaky foundation of some businesses and raised questions about the viability of certain industries and business models, such as theatrical exhibition. Yet the DailyMail reported on Sunday that Amazon has had conversations with AMC Entertainment about buying the beleaguered cinema chain, whose theaters include AMC and Odeon in the U.K. Amazon declined to comment, and representatives for AMC did not return TheWrap’s request for comment (the exhibitor furloughed all corporate staff in March). “I don’t quite buy that this makes sense for [Amazon],” said Bruce Nash, founder of box office and Hollywood data website The Numbers. “It raises an interesting question as to what the future of Amazon’s distribution strategy is, but at this point, the business for theatrical is just so much in doubt.” Also Read: AMC Theatres' Stock Jumps 42% After Report Amazon Is Exploring Possible Acquisition With most movie theaters closed virtually around the world, cinema chains and smaller exhibitors have been thrust into financial binds — especially AMC, which was already mired in $5 billion in debt after an acquisition wave. Experts have said they expect AMC to file for bankruptcy, sell debt or equity, or...

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