Report: Amazon in Talks to Buy AMC Theaters
Troubled movie theater chain AMC Theaters (NYSE: AMC) may have found the white knight that will save the company from financial ruin. E-commerce giant Amazon.com (NASDAQ: AMZN) is kicking AMC's tires, preparing for a possible buyout.
Amazon has approached AMC to discuss a potential acquisition deal, according to a report from British newspaper The Daily Mail. These early-stage discussions may or may not result in a deal, said the Mail's anonymous insider sources, and it is unclear whether or not they are ongoing. In other words, AMC may be left without an Amazon deal in the end.
There is no doubt that AMC's shareholders would welcome a buyout at this point. AMC's market cap has plunged 50% lower in the last 52 weeks and 80% lower in three years. The company was battling the rise of online streaming services when the COVID-19 crisis arrived, closing the doors to movie theaters around the world and pausing AMC's only real revenue stream.
Source Fool.com
