Amazon considers buying AMC Entertainment, reports say

Amazon is considering the purchase of AMC Entertainment and its nationwide chain of movie theaters as a means of The Intersect reported that Amazon founder Jeff Bezos has asked his team of investment advisers and entertainment chiefs to look at its plans to acquire AMC and its chain of over 600 movie theaters in North America, Europe and the Middle East.

An Amazon insider cited in The Intersect's report stated that the e-commerce giant believes that AMC can be a means of obtaining brick-and- mortar marketing weigh stations that could be used to promote Amazon Prime movies in addition to cross-selling other Amazon services through the distribution hubs.

AMC is the world's largest movie theater chain, but has struggled to regain its financial footing after the COVID epidemic, which brought restrictions on limited in-person audiences at theaters. The onset of inflation has made it harder for families struggling with rising costs to go to movies, despite restrictions that have been largely lifted.

The Intersect emphasized that discussions are fluid, and it is not clear whether Amazon will make an offer to buy the world's largest theater chain. According to the outlet, Bezos could wait for AMC's stock to decline, or so it can be purchased at a discount.

FOX Business Charles Gasparino has considered a possible purchase of AMC for a long time, but hasn't pulled the trigger for various reasons. He stated that Amazon is primarily interested in the possibility of buying AMC as a distressed asset and that there is no deal on the table and may never be.

Retail investors gathered in recent years to drive up the stock price of the distressed entertainment company. AMC's valuation rose to over $23 billion amid a surge in June 2021 when its price reached $59 per share.

AMC Entertainment's stock increased by more than 13% in trading Tuesday after the report, closing at $5.15 per share with a market cap of $2.67 billion. The stock was last traded over $20 per share in August 2022, but plunged and has remained below $10 per share since September.

Amazon didn't want to comment on the reports. AMC did not respond to a request for comment.