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 tasked his team of investment advisers and entertainment chiefs with exploring plans to acquire AMC and its chain of over 600 movie theaters in North America, Europe and the Middle East.
An Amazon insider stated in the report that the e-commerce giant views a potential acquisition of AMC as a means of marketing brick-and- mortar weigh stations that could be used to promote Amazon Prime movies, as well as 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. While restrictions have been lifted, the onset of inflation has made it harder for families struggling with rising costs to go to the movies.
The Intersect emphasised that discussions are fluid and it is not clear whether Amazon will make an offer to buy the world's largest theater chain. The outlet reported that Bezos could wait for AMC's stock to decline, or so it can be purchased at a discount.
FOX Business Charles Gasparino has been considering a possible purchase of AMC for a long time but hasn't pulled the trigger for various reasons. He said 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 have gathered around AMC 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 it reached $59 per share.
AMC Entertainment's stock soared over 13% in trading on Tuesday, closing at $5.15 per share with a market cap of $2.67 billion. The stock last traded over $20 per share in August 2022 but has fallen below $10 per share since September.
Amazon wouldn't say anything about the reports. AMC did not respond to a request for comment.