AMC Entertainment Holdings is up sharply today amidst conflicting reports of a potential acquisition by Amazon.
“With Amazon not dependent on any other release windows beyond its own subscription service (other than to qualify for industry awards), we would view increased control over the theatrical window through the acquisition of a large exhibitor as providing Amazon both an incremental earnings stream from its own films and an attractive marketing vehicle to drive additional subscribers being exposed to the studio’s films”
Eric Wold, Analyst at B. Riley FBR
AMC has been struggling and exploring options including bankruptcy; however, there is still skepticism that shareholders would consider an offer as the company’s stock hovers near all-time lows.