For months now investors have been curious whether Amazon is going to buy AMC Entertainment or not.
The topic resurfaced in 2021 when investors speculated ways AMC stock’s share price could surge.
Today AMC is up more than 29% this week.
So, is there a possibility Amazon is going to buy AMC Entertainment in 2022?
And does the century old movie theatre chain even need an acquisition?
Let’s discuss it.
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Amazon and AMC rumors
There has been a number of Amazon and AMC rumors going as far back as 2020 an even 2018.
The rumor was that AMC and Odeon (UK) were in the talks about an Amazon and AMC takeover.
It was then made unclear whether discussions were active during the possibility of an Amazon and AMC buyout.
Amazon has considered getting into the theatrical movie business before; they were reportedly one of the potential buyers for the arthouse chain of Landmark Theaters, which were sold in 2018 to Cohen Media Group. Bloomberg.
So, Amazon’s interest in acquiring AMC has certainly been there.
The talks about a possible AMC merge were happening during the pandemic when the movie theatre chain was forced to close its doors to the public.
Sources said if there was an agreement there would be no merge between Amazon and AMC.
Amazon would buy AMC directly.
However, two years later and Amazon has not acquired AMC yet.
But does the theatre chain even need an acquisition today?
Let’s talk a little bit more about it.
Does AMC need Amazon to acquire it?
AMC no longer needs to be acquired by Amazon nor any other company.
The movie theatre chain showed promising progress and growth every quarter of 2021.
CEO and President of AMC Entertainment, Adam Aron, said they expect 2022 earnings to double.
Although Amazon and AMC could innovate as a merge or buyout, the company managed to escape bankruptcy in 2021 and no longer requires an escape plan.
While the stock may still be heavily shorted, a merge with the tech giant could force short sellers to step down.
This would greatly benefit shareholders of AMC Entertainment Holdings, Inc.
In fact, Amazon just acquired MGM Movie Studios in a $8.5 billion deal earlier in March.
Is there a possibility Amazon is going to buy AMC in 2022?
Although possible, it’s highly unlikely as AMC theatres’ CEO Adam Aron has paved a positive road for the movie theatre chain’s recovery.
This recovery could provide Amazon with an incentive to buy AMC as it no longer faces its mountain debt nor limited attendance.
AMC Entertainment has gone to innovate in several ways.
You can now buy movie tickets online using cryptocurrencies such as Bitcoin, Shiba Inu Coin, and Dogecoin (one of Elon Musk’s favorite).
The company is also initiating its AMC Perfectly Popcorn Brand to increase its revenue streams.
The team is welcoming former Frito-Lay executive Ellen Copaken to lead the project.
Something else AMC is doing that no other business has done is introduce NFTs to the market.
Although still relatively new, this innovation has already created a phenomenon and it’s here to stay.
So, whether Amazon and AMC come to a buyout agreement this year or not, the century old movie theatre chain doesn’t seem to need it.
At least not where it stands today.
I’m curious to hear your thoughts about a possible Amazon and AMC merge.
Leave a comment below.