Why AMC Stock Surged 25% Today
Shares of AMC Entertainment (NYSE: AMC) jumped more than 20% on Wednesday after the movie theater chain said it would stop showing movies from Comcast's (NASDAQ: CMCSA) Universal Studios.
AMC's announcement came after NBCUniversal CEO Jeff Shell made comments suggesting that Comcast would seek to use a direct-to-consumer delivery model for its films more often. "The results for 'Trolls World Tour' have exceeded our expectations and demonstrated the viability of PVOD," Shell told The Wall Street Journal on Tuesday. "As soon as theaters reopen, we expect to release movies on both formats."
Those comments apparently didn't sit well with AMC CEO Adam Aron. "This radical change by Universal to the business model that currently exists between our two companies represents nothing but downside for us and is categorically unacceptable to AMC Entertainment, the world's largest collection of movie theatres," Aron said in a press release.
Source Fool.com
